IS THIS A GOOD WHOLESALE DEAL?

[Bobby Jobs]

I just signed a contract with a seller than I intend to wholesale. The property is located a suburb of Detroit (yeah I know) that's mostly blue collar but is growing and has a low crime rate. Anyway here are the details:

- Single Family 3/1.5 Vinyl Sided

- 2.5 Car Detached Garage

- Full Basement (partially finished)

- 1440 sq ft/ Lot size 40x105

- Taxes are $1200 per year

- ARV is $72,000 (Based on MLS Comps)

- Move in Ready with only about $2500 in renovations that could be scheduled in over the next year or so

- Tenants already in place, but below current market rates

- I'm getting it for $50,000

Would this be a good wholesale deal?

[Ned Carey]

Yes I suspect it would be a good deal to wholesale to a landlord. However it depends on your market. If there are deals this good or better all over then perhaps not. If deals are tight it might be a very good one.

OK I just noticed that you didn't mention the rent. I thought the rent was $1200 a month but I see that is the taxes. This is a pretty tight deal for a rehab and flip. Without knowing the rent, there is no way to know if it is a good deal for a landlord.

When evaluating a deal

Important

• Rent
• ARV
• Repair cost

Unimportant

• bed and baths
• siding
• garage
• basement
• size

All the things mentioned under unimportant are already taken into account in ARV or rent amount.

Based on ARV this is a tight deal with no room for a wholesale fee for a flip. Without knowing rent, it can't be evaluated for a wholesale to a landlord. If you don't know the rent all those things under unimportant and the specific location would help someone local to you estimate the rent.