Possible First wholesale Deal

[Ade Amuda]

Hi All,

I have found what may be a possible first property to wholesale, but I need some more guidance if this is in fact worthy enough. The seller is selling the property for 65k, and with it completely gutted out it needs a ton of work done we estimated at least 30k in rehab. He believes once finished the house could be worth 150k, or someone buys the land and builds themselves a 200k house. I'm thinking no more than 110-120k because the house was built around 60s or 70s. This property is in a really good neighborhood and one key thing about this house is that it has basement, which is rare to come across in Oklahoma. Should I run more number to ensure this is worth it? Any advice would be great thanks. Here are the numbers again. 

Price: 65k

Rehab: At least 30k

3 bed/ 1 bath

Approximately 1400-1600 sq ft. 

ARV: 120-150k

[Tom S.]

@Ade Amuda

My personal experience with rehabbing completely gutted houses is about $37-40/SF, so for 1500 SF = $60k rehab to be safe.  Again, that's my personal experience.  Your numbers may be different for your region.

So ARV = $120k (use the lowest number)

* 70% = $84k less $60k rehab = $24k max offer and you have to account for your fee in that number too. 

- Tom