What to Offer

[Ian Smith]

I talked with a seller earlier today. He has a house in Renton, WA that is currently being rented out (lease goes for two more years). He wasn't sure about the value. He mentioned that zillow had it at $333k and tax assessed had it at $302k. I tried to have him provide a number, but he wouldn't. Said for me to come up with an offer. I've looked at the comps and the current as-is value would be around $320k. I'm probably looking to wholesale this to a landlord buyer.

Any ideas on what I should offer? 

Thanks

Ian

[Ned Carey]

No landlord in their right mind would pay $320K for a property that rents for only $1700 a  month. I doubt a rehabber would pay $320K for a property worth $420k when  done. 

I am sensing you do not know how to evaluate a deal or estimate what another investor might pay. Search for the 70% rule here. This is a quick crude guide to estimate what to offer an a rehab property. There are deal evaluators under the analyze tab above.

The fact there is a 2 year lease and it is rented so low relative to the value is a very bad think in my eyes. You are stuck with a non performing property for two years.