Some help on a condo

[Romeo Abenoja]

I am looking at a condo that is listed for 189,000. It has been listed on the MLS for only 2 weeks and the market here is slow, so I know it'll be sitting for awhile. Anyway, I saw a sheriff come by and put a notice on the door. It said that there was going to be an auction for the property for $153K next month. I'm assuming that he didn't pay his taxes and/or condo fees and is getting sued. I know that the unit needs some work. I'm estimating it to be around $20K. Now going by the rule here on the forum, I should offer 70% ARV minus rehab costs and fees. Comps for similar units sold are around 200K, but they are outdated. The most recent sold is about 2 months ago for 192K, again it needed updating.

So, taking into account that the market is slow, I am comfortable with an ARV of $200K. So, should I offer 140K - the 20K for repairs, for a total of $120K? What about the sheriff's auction with a price of $153K? Can this guy even let his condo go for under that?

Thanks in advance for any help/advise! This will be my first time flipping a property...maybe I'll get to see what it's like on the other side of the fence! :mrgreen: