Estimating Repairs and is this a deal?

[Adam Moyer]

2/1, 1000 sq ft. Complete gut, damp basement, place is a hell hole. Seller owes 28k on their loan. Recent sales in the area of similar properties are $62k abd $90k. Seller is looking to get out as soon as possible.

I have not done a wholesale deal before, so what is the best way to estimate the amount of repairs to determine if this is a deal that could work?

Thanks!

[Will Barnard]

Originally posted by Adam Moyer:

In case anyone was wondering we ran some numbers and determined that it was worth everyone's time after repairs. However, another investor beat us to it about 6 hours before our meeting. Would have been my first property under contract, but at least it confirms that I would have been correct in moving forward with the property. It was sold to a fix-and-flip guy for $35k.

Based on that, I am guessing the exit value was in fact around $90k and the max purchase price I listed pretty much hit the nail on the head. Don't worry about losing out on this, keep in mind it was a good experience for you and makes you that much closer to your first deal!