Deal or No Deal?!!!

[Andrew Teng]

Recently, I saw a 60 old house in the market located in a good school district with asking price roughly 10% below market value. It is not a short sale nor a REO (which saves a lot of hassle).
However, the biggest drawback of the house is that the house's backyard is 50 feet away from a busy highway. You can't see the highway, but you can definitely hear noises coming from it.

Is it a deal or no deal even the number is right?

[Ying Suo]

Hi Andrew, here are my thought to share with you. For a flip, 10% below market value won't give you enough room for rehab cost, resale cost, holding cost, etc, and still make a profit. I recommend that you first figure out all the numbers to see where you need to land in order to make the deal work, and then decide how to proceed next. For someone who wants to buy and live in there, 10% below market price might be a good deal, but for flipping, that price won't work.