Review This SFR

[Eric Metz]

Conservative ARV: $29,488
Rent: $500
Repair Cost For Rent Ready: $6,000

Negotiated to $12.5k "lowest they will accept"
Would consider terms at $5k down (asked for 0 down but stated $5k was minimum they would accept.) and $250 a month until balance was paid.

Assuming tax/insurance around $100 a month the month expense would be $350 for a spread of $150 a month.

A local investor pointed out that I should ask for 60 days no payment to get the house rent ready and a tenant inside. He also stated the spread was probably too low given it is a lower socioeconomic area.

I don't have $5k to put down on this deal to make the terms work, but trying to get something out of it via assigning it would be hard based on the numbers.

I would just like to know your input, recommendation, is it just plain not a deal worth pursuing, or can I tailor terms a little better. I generally stick to strictly wholesaling, but the more I learn about terms/owner financing (especial 0 down 0 interest) I realize I've been missing out on a lot of deals.

I appreciate all of your responses ahead of time.

[Justin Case]

$5k is nothing. If you do not have it pass even if it is good deal.

Some risk will come up that costs that or more. You need more than $5k contingency for risk on a property.