Hot deal in Memphis

[Geoffrey Jones]

I found a property in Memphis offered up by Fannie Mae. It is now under contract. I have a 10 day inspection on the property.

4 Bed 2 Bath
Neighborhood: B+
Crime Rate: Safe
Schools: Under average
Size: 3400 sqft
Original Listing Price was 225000
My Accepted Bid was 180000 after heavy negotiating and bidding by my realtor.
Earnest Money Deposit: 18000

Repairs 15,000
Most repairs were already done
Terms: All cash offer

I have found 3 properties around the same size in 3400 SQFT+- 10 years construction date that are less than 1 mile away that sold at the following prices in the last 6 months.

$290000
$295000
$345000

However, I still see that there are some houses selling in the neighborhood on Zillow for about 170000 - 225000. (I'm not sure if they need repair or not)

I am roughly estimating that my ARV is 290000. I'm taking the lowest just to be careful.

My plan is to 

1. acquire via hard money with 10% down rent it out and then refinance to get all cash that I put in the deal out via a portfolio lender or delayed financing. Please let me know if my plan sounds solid.

Exit plan: Wholesale if I cannot obtain financing (However I have excellent credit and income to back it up and have cash reserves in the bank).

I have bought lots of property before retail :(, but this is the first time I am trying out a strategy like this with such a good deal and lots of equity. I'm trying to make sure I cover all my bases.

[Curt Davis]

MY gut tells me that if the value is truly $290k a home owner would have locked this one up before you and used a 203k loan to cover the repairs. If it was on the MLS which it sounds like it was as your using a Realtor my guess is value closer to what Zillow states.

I am also a licensed Realtor here in Memphis.  If you tell me the address I will give you my take on what I think the value is.  

Lots of equity doesnt mean much,  I am trying to sell my old personal residence and I have it at $489,900 and the house across the street sold for $695k in 11 days of being on the market and for some reason I cant find a buyer for my home. My home is incredible and the only negative I am hearing is its too big!!!!  

Let me know the address and I will give you a 2nd opinion, you have 10 days to back out.