Need Help Valuing This Deal

[Ryan O'Malley]

Good Evening All,

I would greatly appreciate some assistance on a wholesale deal I'm evaluating in Northern California. The property is a 2 bed 2 bath approx. 1400 SF in a very nice city outside Sacramento and the seller wants $480,000. According to Redfin and Zillow, the property is estimated to be between $433,000 - $478,000. Now, this is a harder property to comp because the surrounding properties are 3 bed/4bed+ selling for approx. for $700,000-$800,000 which leads me to believe there is some upside for a potential investor. There are a few nearby 2 bed, 2 bath properties with comparable SF that have sold for around $505,000. The property is in good condition, no repairs needed, and the seller wants to move as soon as possible.

Now, I'm calculating 8% closing costs, 5% holding costs, 5% risk assessment, and a 5-10% investor profit. If I were to start at $450,000 - 8% closing costs ($36,000) - 5% holding costs ($22,500) - 5% Risk Assessment ($22,500) - 5% Investor Profit ($22,500) = $346,500.

Am I structuring this correctly? Can I cut costs in any way to make this a more attractive deal, or am I forcing it?

Thank you in advance.