First time Wholesale Deal Analysis - Paterson, NJ

[Dipo Aromire]

Called a FSBO sign while Driving for Dollars . Owner wants to meet tomorrow Saturday.

Smallest house on the street with 2 families and SFH. House has 1bd/1bd, LvRm, Dining Room, unfinished basement used for storage. Mother currently occupies the house but is moving to assisted living; son is looking to sell. Son's wife mentioned $99,500 asking price.

Ran comps with agent. No real SFH 1bd/1ba available. Closest comps are:

SFH 1bd/1ba $65k (Condo) sold on 11/21/2013...on 0.2.miles from target

SFH 2bd/1ba $65k sold on 08/05/2013...0.7 miles from target property

SFH 2bd/1ba $120K sold on 12/30/2013...0.6 miles from target property

My 1st strategy is to flip to a rehabber who can convert to a 3bd/1ba or 3bd/2ba (recent comps range from $143K for a 3bd/1ba to $175K for a 3bd/2ba (on the same street).

I don't have repair estimates yet but I'm thinking of offering the owner:

65K (ARV) X 70% = $45.5 less whatever I can guestimate repairs to be which i have no clue about. Assuming $10K repairs. MAO would $35.5K

My 2nd strategy is to lease with option to buy and then lease it out. Lease comps range from $800 - $1,000 per months. Even i can purchase with a conventional loan for $50K for 30yr term at 5%. (approximately $300 loan payment) + maintenance ($100) + property mngt ($100) + Taxes and Insurance ($300) it wold still cash flow positive. However, this is contingent on owner.

Am i missing something on either strategy? Thanks for the input.