Deal In Fredrick Maryland
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!
Most Popular Reply
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.