if i use all my own cash

[Danny Woodson]

a lady i know has a townhouse condo unit that she wants to sell. there is currently a tenant in there. it is an end unit.

back in october an end unit in top condition sold for 141k.

right now an end unit that looks identical to the one i am trying to get under contract is on the market for 159k.  all cosmetic work needs to be done to this one (over priced).

so if i expected to resell this one without putting any work into it, could i buy it for 110k?

i am using all of my own cash so there are no lending fees or anything

 110k --> 130k resale.

its only a 20k spread but if i use my own cash it cuts down a lot on the lending fees.  i would expect to resell it within a month

[J Scott]

Originally posted by @Danny Woodson:

so if i expected to resell this one without putting any work into it, could i buy it for 110k?

i am using all of my own cash so there are no lending fees or anything

 110k --> 130k resale.

its only a 20k spread but if i use my own cash it cuts down a lot on the lending fees.  i would expect to resell it within a month

Not sure what you mean by, "could I buy it?"  Are you asking if the woman will sell it to you for that amount?  Only she can answer that question...

Or are you asking if it would be a good investment?

If that's the question, the answer is likely no.  For several reasons:

-  First, if you plan to sell it without doing any work to it, you're going to have difficulty selling to an end-buyer getting a loan.  The lender will see that you purchased it for $110K, did nothing to it and are now trying to sell it for $130K.  They will assume that, since you didn't do any work to it, it's only worth the $110K you paid, and a buyer won't be able to get a loan for more than that amount.

-  Second, there's not much profit for you.  Once you factor in purchase closing costs, holding costs (insurance, taxes, utilities, lawn care, etc.) and selling costs (closing costs, commissions, concessions, warranty, etc.), you're likely looking at a profit of less than $5K if you sell for $130K...and potentially much less than $5K if you don't get full asking price.