Two SF Homes for 1st Deal | What should I offer???

[Ryan Copeland]

Hello BP,

This deal is for 2 SF homes and 1 empty lot. Both units were built in 1970, 3BR 1BA, 1350 sq ft each, are 4 side brick, have a car port each and both sit on about .2 acres.

Both houses are owned by a corporation and used to be used for housing. I walked around the outside of them and everything seems to look pretty good. Both of the roofs are good and one house has a newer looking AC unit, the other one looks quite old.

The properties aren't listed yet. I got in touch with the person who is in charge of selling the units and they said that they had just started working with a realtor recently, but are not under any contractual obligation to list them with him. The realtor told the company that he suggests an asking price of $98,500 for each house and $18,000 for the empty lot. They want to sell as a package deal for $215,000.

Here is a catch. The company won't let me go look inside of the properties. The lady I talked to said that there is one person at the company interested, but he made a low offer. Also, she feels like if she allows me to go inside then she needs to get the realtor involved. I told her that she's not contractually obligated to list with him, but she feels morally obligated that if she let me look inside the homes then she needs to get him involved. Of course they'll be hit with the 6% realtor fee as I would get a realtor too in that case. I was asked to send an offer via email. This is a bit weird to me, but okay....whatever.

• The homes are on a good street and quiet neighborhood.
• Roofs look good
• Windows are older
• Houses look structurally sound
• The homes are like "twin properties". They were architecturally designed to face each other and have a common place in between them.
• The lot for sale is small and I wouldn't do anything with it.

Estimates

• Asking Price = $98,500
• Rehab = $30,000
• ARV = $150k - $165k based on recent sales and rehab budget

I'm not sure what to offer on these properties. I would love to BRRRR them. Plus it's hard to make an offer if you haven't even seen the inside.

What should I offer? How should I approach this?