Deal In Fredrick Maryland

[Tyler Scott]

Detached Rambler built 1965 Asking (MLS Listed): 155K ARV: ~230K Comps are based on housed of same square footage with 3 beds. The house in question has only one bed currently. Previous owner knocked down a couple walls to convert the other two beds into a huge living room. So after putting those walls back in that should raise the home value back to local comp prices; assuming other repairs are done as well. Correct? Considering I'm a wholesaler, would this be a good property to tie up? 155/250 = 60% So, assuming repairs occur within 30 - 40K or less then my buyer would stand to make 45 - 50K. This is adding my fee. About 6K of that and they're making near 40K. Is 40k enough of a profit for a flipper or other end buyer? Any responses are greatly appreciated!

[Andrew Michael]

At an 80% deal with your fee included you would need to get this under contract at around 138k.

(ARV x .8) - 40k (Reno) - 6k (Assignment Fee) = 138k

Not far off here so I would shoot an offer in at the 120k mark.  Also, make sure your contract is assignable.  I have seen tons of people trying to assign non-assignable contracts lately at which point they have to go get an addendum.