Help with a Deal Please

[Robert Treakle]

Hello,

I am very new to wholesaling and I am looking at making on offer on a property but I am struggling to figure out my offering price. The property is a 2 bedroom 1 bath 745sqft condo in Braintree Massachusetts. It is currently a rental property with a tenant until November. The rent in the area is around 1600/month. The kitchen was renovated two years ago. The property from what I hear is in decent condition and the ARV based on comps is about $185,000. The owner is not particularly motivated but is willing to sell if he likes the price. Because of this I am considering other styles of deals beyond the simple cash deal, such as owner financing.

My struggle is that I am not sure how to calculate the repair costs. I have heard that a quick and dirty method is to multiply the square footage by anywhere from $7 for a property in good condition to 15$ for a property needing significant repairs. Is this method valid? Once I have that, I was thinking that I would take 70% of the ARV minus repair cost, minus the profit that I would like to make on this deal. Am I thinking about this deal in the correct way or should I look at it from another angle?

Thank you.