Potential Deal in Marietta - Need advice

[Duane Tyndale]

Hello BP,

I am working to close my first deal and I need help. Since I am just starting out, I probably have some of this wrong. The potential deal is for a late 70's 3/1 SFR on an acre in a desirable section of Marietta. The house needs significant repairs (although I don't think it needs to be completely gutted). I followed the BP ARV reference doc to and adjusted the comps accordingly to calculate the ARV. Next, I used the BP Wholesaling Calculator to come up with the MAO. The gap between my calculated MAO and what the owner wants is about $70000.

My question is, could that gap be the acre of land that, for some reason, I may not have accounted for correctly in my ARV calculation? Should I do a separate ARV for an acre lot in the same area and add that ARV to my initial calculation?

Thank you in advance for your help!

[Troy Durrette]

Congrats on your commitment to purchase, and with value, everything is subjective. Unless 1 acre is a really BIG lot for the area, don't consider much weight on it. Land is always a grey area, unless it's clearly black and white like down town. Hope some of that is helpful.