Sugar Land Town Home market

[Steph Thomas]

A seller has contacted me about his 3 br 2.5 ba town home in Sugar Land. This would be my first such deal and I'm open to hearing of anyone's personal experience in that market.

I've done my due diligence and it looks as if it's ARV is about $225K with what appears to be only cosmetic updates needed, such as granite counters in kitchen, sod in the backyard, new faucet fixtures all around. I would be wholeselling the deal for $170K.

Any thoughts, advice, etc? Thanks!

[Mark Sewell]

Save what deal?  There's no deal here.

She buys the thing, pays closing costs.  She then pays again when she sells.  Gotta figure at least $10-15K in upgrades/remodeling, even for the most basic 'cosmetic only' rehab.  This is assuming she is using all her own money, and not hard money or paying a PM lender.   Sorry, but I'm not seeing the profit margin here.

Sometimes the deal isn't there.  It simply does not make sense to sell a perfectly good house to an investor -- just advise the seller to make the model repairs themselves, if that is all that is required, and then list it with a realtor.  That is the end of the pool they swim in, not us.   If the seller isn't motivated, and the house isn't distressed, then there is no reason to just give away the equity that would be need to make it worth the time/money of any investor.

The whole idea of working with an investor is because the house won't sell through normal market channels, or it won't sell fast enough. 

What am I missing?