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Updated over 12 years ago,
Wholesale deal help
I am working with an extremely motivated owner. I do not have her under contract, but very close. The reason for this post is that the house is scheduled to be demolished. I am working with the county inspector as well. The inspector states that repairs are 65%+ of the Tax Value. Currently, the house is zoned B-1 (Neighborhood Business).
The house is a 2/1. 916 sq ft. Building assessed at 39k, land at 25k. Total of $64k. NO A/C.
I decided to use the formula - Tax Value ($64k) - Repair (@$20 sq ft= $18,320 ) divide by 2 then subtract my wholesale cut ($5k) = to equal $17,840 offering price. I want to add a little cushion, so I was considering a $13k purchase price.
Does this sound correct?
Also, since it is best zoned for neighborhood business what are some suggestions to get this property sold?
Am I missing anything here?
Thank you for your time!
Christopher Davis