Meeting with the first potential seller

[Adrian Smude]

First off I'm a long time DIY landlord so I have real estate experience on that side of things.  

I've been driving for dollars and mailing out hand written yellow letters.  I received my first call last night and the talk went great I think.  It is an older couple that have a few investment properties, but this one has been empty for a year because their son moved out of it because of problems with his wife and they don't want to deal with it any more.  They own it out right with no liens, but are not interested in owner financing.  I asked about the property and she made it sound like it needs paint, cleaning inside and out but there wasn't major damage.  Today I drove by the house again to take some pictures and look at it from the side and I noticed an open window which I could see the back door was open so I'm assuming people have been inside and there's at least some water damage.  She is going to try to find time to call and meet me this weekend to show the place.  I'm most liking looking to whole sale the property, but I'm not great at estimating repair costs for something that is looking to be a big job.  Any advice on what I should do to get a better repair cost estimate?  I don't want to offer her the wrong price or offer it to a flipper with the wrong numbers.  All advice is welcome. 

[Nadia White]

@Adrian Smude, first of all, congrats for your first deal. You have done the most difficult part, where nobody else could help you!

1. you need to establish an exit plan and therefore you need to know if the area in which the house is located is more of a rental area of a fix and flip area.

2. since you are a DIY landlord, you are fully capable of going through a house and list the things that need to be fixed/replaced. 

3. Make lots of pictures and take lots of notes. There is more memory in paper and a pencil that in our heads. 

4. you don't give her a price there on the spot. Ask her what she is hoping to get out of the house (and don't let that intimidate you). You tell her that you need to go to your office/home and run your numbers. But make sure that you get back to her within 24 hours. 

5. Based on your pics and your notes, find a local contractor/wholesaler who can help you estimate the costs. 

6. Run comps (sale and rental)

7. run your numbers like every wholesaler would. 

8. Depending on your market, pad it so that you can negotiate a little, but if you are in a sellers market beware of being too low. 

Good luck!! and congrats again!