Resale Price: 204 Stanfield Cheyenne WY

[Rowdy B.]

Hi all -

I've put in a cash offer on this property:

http://www.indexpost.com/property-for-sale/wyoming-cheyenne-82007-204-stanfield-ave/

for $75,000 using this formula:

Max Purchase Price = Sales Price - Other Costs - Profit - Repair Costs

MPP = $125,000 - $10,000 - $20,000 - $20,000 = $75000

All the details about the property are in this post:

http://www.biggerpockets.com/forums/88/topics/124943-advice-on-mpp-for-rental-flip-in-2-years

My buyers agent informed me that my offer was not the first one the bank was negotiating with, and after that negotiation failed, the bank has now come back to me and counteroffered at the current asking price of $104,900 (which they've just dropped $5,000 from $109,900).

I am questioning the resale price I am using in the formula, which was the lowest of these four:

• Selling agent's resale estimate: $135,000 - $140,000
• Buyers agent resale estimate: $130,000
• Zestimate: $125,000
• Trulia market value: $130,503

I am in Australia, and am relying on outside sources for information. If anyone could provide a guesstimate of the resale value, I'd certainly appreciate it.

I'm also wondering if my profit of $20,000 is unrealistic. I am calculating it as:

20% of (purchase price + repairs +other costs)

= 0.2 x ($75,000 + $20,000 + $10,000)

= 0.2 x $105,000

= $20,000 (rounded to the nearest $5000)

I've lost two other deals using this formula, and after that and looking every day for the past 6 months, I'm wondering if I need to reduce my profit goals in order to actually close a deal.

Many thanks in advance for any advice!

Rowdy