Evaluating a Wholesale Deal - creative options

[Laura Johnson-Morris]

Hi everyone! I have recently set up shop in order to get into wholesaling and received my first call today from a motivated buyer! I'm hoping some of you can help me evaluate this situation and see if wholesaling is an option. I'm aware that the seller is considering other options, but hasn't listed with a real estate agent, so my guess is that I'm competing with other wholesalers.

She paid $259,800 in 2001 for the 4 bed, 2.5 bath house, which was brand new at the time (She's been the only owner). She then put about $60,000 in improvements in the house. She has been renting it out since 2007 and has had bad experiences with tenants, so she wants to sell and get out of the landlording business.

I've comped the house, using 13 properties within a half mile that have sold within the last year. From that, I figure her house is worth about $185,000. From what she says, it is in good structural condition but needs cosmetic improvements (paint, maybe some carpeting) from bad tenants. I'm not sure what a good repair estimate is since I haven't seen the house yet - what would you estimate based on that information?

My thoughts are that a cash offer would be ARV x .65 - repairs, so $120,250 minus, say, $5000 for repairs. Cash offer = $115,000

She won't disclose the balance on the mortgage because she said "no one else is asking for it" and her husband doesn't think it's necessary. The info I do have is:

Initally put 20% down
Refinanced last year at 4.75% fixed for 30 years
Monthly payment is $952 (if she indeed has 30 years left on the loan, my guess is that the balance is $183,500)
Annual taxes/insurance is $1800
HOA fee is $49/month
Has been able to consistently rent it for $1500/month with tenant paying utilities

From that, it looks like someone taking over payments could rent it out and make $4078 annually. Could this be a subject to?

Other creative options for how to wholesale this property?

Thanks in advance!