Deal analysis

[Tiffany Cunningham]

OK I think I have something but I wanted to confirm with some seasoned investors before I make a move

I have a yellow letter lead that just might be ready to sell his 3 family home/income property for the right price. Tax assessment website says it's full market value is 283k. Zillow and findcompsnow.com is saying value is 451k. A similar home in dyre need of a full renovation around the corner sold for 96k. Similar recently sold homes range from 350k-450k max

The home has 8br 4 ba 2800sq ft roof replaced 2 yrs ago interior remodeled last in 2002. Maybe 30k of work put in would bring the value up. This is my rough estimate based on square footage and the description the seller gave me. (2800sq ft * light remodel $11/Sq ft for about $30,000)

How should I proceed in making an offer? Should I even make an offer? My MAO calculation says if i do, I should offer no more than 276k if i want to get a $7500 wholesale fee.

What do you guys think?

[Joaquin R.]

You are going to make an offer without knowing the actual condition of the property?

You have a 100k range on your similar properties. In my opinion, you  are going to need to find out which side of that spectrum the subject property is on, in order to make a solid offer. 

Or you can just make an offer based off his verbal description, however I think you need to do more homework on this one.

1. Get in the property if possible. You are "buying" it, should not be too much to ask.

2. Find out how many more properties in the area are being bought for that 96k price tag and what it is that they are doing with them.

3. Offer away. If it does not work find out why, brush it off, and move on to the next one.