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Updated over 13 years ago,
First Rental or Wholesale?
Just got word from my realtor that offer was accepted for this Fannie Mae property. Not under contract yet. I have 2 days to supply EM.
3/2/2 1580 sqft built in 1968
list: 54.9k
accepted offer: 39.5k + seller 1k closing costs (homepath financing)
repairs est: 25k (new roof, kitchen, and one new bathroom. I think I can salvage the master)
ARV: 80k (conservative, recent comps showed 85k but had large DOM number)
Rent comp: 900-1000 (depends on the rehab)
TI: ~300
PI: 240
cash flow: 210 based on 900 rent
annual ROI: 8.5%
What do you guys think? I say not bad, but not great. My realtor who also invests offered to be end cash buyer for double closing if I decided I did not want to pursue this. He knows all the numbers going into this deal. Is it possible to wholesale this to him? How would I approach it?
Feel free to correct my numbers or the deal itself if you find any errors.