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Updated over 8 years ago,
Deal in Ohio, I am in Texas and Seller in Georgia
I am working on a wholesale deal in Dayton, Ohio. I live outside of Houston, TX (Pearland) This is my first deal that may actually work, but its kinda complicated. I found this through my brother. This home is owned by his business partner and they both moved to ATL to pursue being music producers. The home owner is going to move his family down to ATL the end of July and wants nothing to do with the house after that.
The home has no mortgage. 5/3.5/2 3700 sqft plus full finished basement brick exterior on almost 1/2 an acre near Miami Valley Golf Club. Zillow has the property a little over 160 and county tax 155. It has a new roof (2015) sump pump (2015) I needs new carpet whole house but owner says wood floors under.
So lets say ARV is 150K due to slow Dayton Market (haven't talked to Realtor). 150*70%-20K renovation =85K The seller wants 85K but that does not include my fee. On top of that the seller hasn't paid taxes in 3 years and owes 17K. I talked to him to help him understand it is his responsibility. If I have a 5K fee and take off taxes I could offer $63K. His wife is going to send me a walk through video. I told him I would make an offer after that.
Now that the long back story is done...
1. Am I crazy to try to do this deal? I know Ohio is not wholesaler friendly.
2. I know the renovation is a wild guess especially for a big home. Does my logic make sense at least?
3. If I move forward can I close the deal without traveling to Ohio? I am guessing I can fedex contracts and use mobile notaries. Can I do final closing from afar?
4. Is there anything I should look out for?
5. How do I handle back taxes? (I checked the county auction list and it is not on there.)
My wife is from Dayton and her friend's grandfather is an investor so he may be a buyer and the owner tells me his friend is interested in the property and gave me that friends number and said his neighbor was asking too. So I have possible buyers to reach out to after a contract.