Analyzing deals from wholesaler's lists, not seeing much upside.

[David Park]

Hello Everyone, 

Wanted to see if you're experiencing this at all... I'm on a few buyer's lists of local wholesalers in my area, most are from the bigger wholesaler companies in TX (won't name them) but each time I see a home that looks like a great investment, I crunch the #'s - either for rent, or to flip and I'm just not seeing much upside. 

The cash price being for ex. 100k.  Perhaps needing close to 40k in repairs.  Then I'm looking at comps, and they have newly remodeled homes, similar in size and location selling between $175-190k.  Some even staying on the market for as long as a 100 days+.  That makes me nervous as a potential flip, that another house did a great job with remodeling and they're having trouble selling it, meaning if I do the same rehab, mine may not sell either, if it does, it may be for 175k and after closing costs I'm making 20k.  Is this the type of deals you're seeing?  Not sure if a rehab is worth the effort and time, for a 20k return honestly. 

Even when analyzing rent, I see barely $100-250 in cash flow, after PITI with current rates, and this is IF I'm lucky.

Let me know your thoughts, perhaps I'm not analyzing them accurately, as I know there's better deals out there. 

Or perhaps, my wholesalers are listing prices too high, shrinking my returns in the process (most likely)

Thank you all!

[Eliott Elias]

Wholesalers rarely dish out good deals. They try to squeeze every penny dry, and most are newbies that do not know how to calculate rehab or ARV. They are just excited to put a property under contract.