Possible Deal!?! Comps

[Namon Thorn]

Hello BP Fam

I would like to ask your opinions (again) regarding another house here in Houston Tx. The property is a 5br/2bath
2032 sq ft house. The house is currently being lived in by the owner. It needs roof, plumbing and foundation repair (sinking down the middle). The owner says she would like to get $25K out of the house. It's appraisal value is listed by the county as $38280.00. It also has $7500.00 in delinquent property taxes. Good news is that she is motivated to sell. Would and investor (your thoughts) be interested in a house with these kind of numbers? Basically, this house is in rough shape.
What do you think? Thanks for your response.

I just received some comps on the subject property from a Realtor. He sent me 3 houses that have sold within the past six months. All three properties are under 4miles of the subject property.
1) $30K
2) $30K
3) $50.1K
______________
$110100.00 /3
= $36,700.00 ARV

$36,700.00 Roof:$1630.00 Plumbing:$1610.40 Foundation Rpr: $7646.00
- $10893.00 (Total Repairs) $11K
- $734.00 2% Purch Cost
- $1101.00 3%Sales Cost
- $7340.00 20%Acceptable Profit
- $1835.00 5% Hedge Factor
______________________
$21903.00
$7500.00 Dlqnt Taxes
_________________
$14,403.00 MAO

These are the numbers that I came up with. Good Bad or Ugly?!?!
With the taxes being delinquent would it be good to make a very low ball offer to the seller? IE. $9000.00 or less?
Should the seller or end buyer pay the overdue taxes in this case?

Help!! Thanks for the answers!
NHT

[Ned Carey]

Your "comps" are 30,30 & 50 within 4 miles? That is not good enough, period. Are they truly comparable or just recent sales.

You are guessing at the value so how can you evaluate this deal? You need to figure how much it is worth in good condition.

I am certainly not going to rehab a house for $7K in profit.

$21903.00

$7500.00 Dlqnt Taxes

Why are you assuming you are paying the delinquent taxes? Normally properties are sold free and clear of any liens. So normally the back taxes come out of the sellers proceeds. This can be used in negotiating so it sounds like you are making a higher offer. good luck - Ned