How do I know if I have deal?

[Kevin Sillah]

Hello,

I'm a relatively new investor and I've been aware of the Wholesale Process for quite awhile, but I've recently decided to take the plunge and go all in on Being a Wholesaler and I'm doing my Due diligence on a particular On-Market Property and I would just like some feedback to see if I have a Deal on my hands or not. I've based my numbers around the standard ARV for the Dallas Market.

Would someone be able to run these numbers for me to see what the margin is for any profit to be made, if I was to get the property under contract and wholesale to a buyer.

ARV: $176,000

Estimated Rehab: $42,500 (Heavy Rehab)

MAO: $72,700

This offer is based on the comps I've done of the surrounding area.

 Here is the Link to the Property; 3910 Atlanta St, Dallas, TX 75215

I appreciate any help on this in advance!

Thank You. 

[Jerryll Noorden]

The rehab is not $42K

Not sure about numbers in Dallas but if this was in CT:

You need a new roof, ($6K - $12K)

New appliances ($2K-$3.5K)

Exterior Powerwash ($500-$2K)

Exterior Paint ($3K - $5K)

Flooring ($6 * Sqft= $6K) Does not include labor (assuming the area justifies hardwood floors

1Bath = $5K - $7K

Windows ($200 - $400)/window not including installation

doors, interior paint, Trim work,

New Kitchen ($10K-$17K)

This to me looks like at least a $70K rehab, and that is if there are no surprises.

Also, 2 beds 1 bath are bad deals. No one wants 2 beds. At least a 3 bed!

Now, all this is to just FIX what is bad. This doesn't include a redesign (open floorplan etc. etc.)

Then also dealing with electrical and plumbing,  permits.

This is not a deal my friend,

I would offer no more than $20K for that... IF the ARV was indeed $170K

Hope that helps