Evaluate my Deal in Greater St. Louis/Metro East IL

[Jarred Black]

Hello All,

I have a wholesale deal in my area that I think would be a great deal for any landlord buyer. Its a 3bed 1bath home in good condition located in a good neighborhood. I've marketed the deal to my buyers list, I've posted it on Craigslist, Backpage, etc. I've even reached out to other wholesalers and realtors for a buyer, but haven't gotten any real interest. Ive had it under contract almost 2 weeks with a 30 day close.

The after repair value of this home is $45K conservatively, it's last appraisal was at 58K. I'm asking $20K. This means a buyer is literally paying less than .50 cents on the dollar for this property. A smart move for any investor I think

The condition is clean and repairs are minimal around 5K to get it back on the market for rent. It has rented for $550 in the past. At $550/mo. your rent roll will be $3,700/yr. after taxes and insurance. This puts your rate of return at 15% which is higher than average for the area. This property will pay for itself in 7 years. You could even get $600/mo. and raise your rent roll and return even more.

I have a REIA meetup this week where I'll be marketing and following up on my buyers list. I also have an auction to attend where I could potentially find a buyer. I do have a strong contract with contingencies if I have to walk away and I didn't put any money down, but I want to move this property. Maybe my asking price is too high? Maybe I'm missing something.

Any feedback or interest on this would be appreciated.

Thanks,

Jarred