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Updated over 9 years ago,

User Stats

3
Posts
1
Votes
DeJaniera Little
  • Real Estate Agent
  • Philadelphia, PA
1
Votes |
3
Posts

First Wholesale Deal.. Back Taxes and a Not So Nice Tenant

DeJaniera Little
  • Real Estate Agent
  • Philadelphia, PA
Posted

Hello BP,

I'm very new to wholesaling.  This would be my first deal.  I contacted a seller today and he called me back. He has a property in a not so nice neighborhood and wants 10K.  He also stated he had back taxes on the property for about 5K.  I checked the assessors office and the back taxes owed are totaling $5035.91 So in essence he is asking $15035.91.  

The average ARV based on the cash sales for the past 3 months is about $21,200. The ARV*.65 = $13,780 and we have not even addressed the repair costs and the tenant. I don't think this is a deal that I want to make an offer on. I could build in the cost of evicting the tenant, but since I don't plan on keeping the property, should I just build in my assignment fee and give him a final number? I'm still green and unsure right now, so any assistance would be wonderful.

Thanks in advance!

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