Lower Westchester, NY Deal - Opinion?

[Kay Lee]

Warning: It's long!!! But I want to give as much info as I can to get your honest opinion.

Since I joined BP nation, I've been looking hard to find my first deal, and I may have found one. Need your expert opinion.

Story: SFR in Lower Westchester Co., NY. Not the best neighborhood, but not war zone either. I found it on craigslist that wholesaler listed. The owner is an old lady from Bronx, and her daughter's family is living in it now. She bought it mid 2012 for $162k from a 94 yo lady whose parents were the original owner from 1900. Owner's daughter was going to rehab this, but after putting in new boiler, new gas line, cover original hardwood floor with cheap blue carpet, and hodge podge kitchen (with 3 different cabinets), she got tired and wants to get out. The wholesaler is assigning the contract.

Asking $135k cash. ARV $210k-$220k. Estimated rehab: $30k (remove carpet and refinish/ repair hardwood, paint exterior and interior, redo kitchen and bathrooms. Hope I don't need new roof.)

2,400 sf 5br/ 2ba built in 1900. Has lots of original details. 2 1/2 stories + basement + attached garage

Exterior: asphalt shingle roof was done in 2000. Siding is in good shape. (Do I need new roof?)

Main level - enclosed porch, living room, dining room, bathroom, and kitchen

2nd level - 3 bedrooms, bathroom,

Attic - sitting area, un-permitted kitchen, 2 bedrooms, office, and un-permitted bathroom. and lots of storage (I will take out the kitchen and bathroom and cap everything so it is compliant)

basement - new gas boiler, and water heater, unfinished but +9' ceiling height. Attached garage, but garage doors are blocked off, and being used as storage. Above the garage is the deck accessible from the kitchen.

I am doing FHA finance with 3.5% ($4,550) down. Rehab of $30k will be also financed via 203k.

If I apply 70% rule... 70% x ARV 210k = 147k. Minus $30k rehab puts me at $117k. Asking is $135k cash. I offered $120k financed. He countered $130k cash. I offered $130k financed. He accepted if I can close in 30 days.

Did I go too high? Honestly, I couldn't find any sfr comps sales past 6 months within 3/4 mile radius under $220k. (except one short sale at 60k) I want to be conservative at $210k. (with ARV of 220k, it works better obviously.)

The rehab can be done in 3-4 weeks. It will be around late March, early April when it's ready.

What do you think? Yay? Nay? Comments? Opinions?