All Forum Posts by: Donna M.

I'm still "iffy" about the ARV, though, because homes in the area that sold recently, aren't as large as this one. How far away is reasonable for a comp to be? And, how close should the square footage come? Also, at 77k in repairs, couldn't you just build a whole new house? I calculated the worst case scenario but am I being overly paranoid? I know I don't have to really worry about this but I still want to make the numbers look good for my end buyer.

Calculating the ARV in the area is based on recently sold homes of the same size, within the general area, correct? What matters more, the size of the comps or where they are? What if there's nothing that big in the area that sold recently? How far out is reasonable? Also, what if just across a street the home values are significantly different? Is this where they get the term "wrong side of the tracks"? Can I count those also? :crazed:

"You can print money, manufacture diamonds, and people are a dime a dozen, but they'll always need land. It's the one thing they're not making any more of." Lex Luther

Oh, definitely! I have four rehabbers/landlords interested in buying, as is. Two made offers just based on their brief assessment and are surprisingly better than I thought. The other two said they'd get back to me before Monday. We'll see what happens...

Thanks, good points to consider!
Because of my out of state location, I plan to wholesale this, if the numbers work out for the end buyer, also. This has been on the market for a few weeks. Can't be sure of the actual repair costs, not sure how for 77k will go, especially on a house with no floors! Based ARV on recently sold homes of the same size within a 5 mile radius. Whose numbers should I trust the most? From my initial calculations, this seemed like a good deal and wanted to jump on it before anyone else! Before making my offer, should I have consulted a contractor? Thanks!

Raleigh, 27601, homes sold within a 5 mile radius and in the past 90 days averaged 276k but I'm using 175k. It's a SFH, 2000 sq feet, interior completely gutted, no floors, just studs, exterior is good, quoted 50k in rehab costs, but going by $35 per square foot plus a 10% cushion so $77k.

ARV= 175K x 65% -77k= 36.75k MOA

Asking price was $34,900, I offered $29k, they countered with $32k.

I'm very new to this, so are my calculations correct? Am I wrong to think this is an awesome deal?

There's a squatter living in the upstairs unit! She was nice enough to show one of my potential buyer's the inside of the home and from that, he made a very reasonable offer. However, I was speaking with someone who's also interested in buying and he's told me in New York,"tenants" have a lot more rights than you think. He says you can't just evict someone even if they're under no contract with you! He also told me about the lead based paint law and how its retroactive. He mentioned something about the roof and how you can only go back two layers. There's only one electric meter, so that has to be split. If I do invest more in New York, I definitely want to build a good relationship with this guy, as Dan advises. So far, the two who have looked at it put the repairs at $12k, if the roof needs to be totally redone. New York is tough! Maybe I'm just a softie from Hawaii. All these little details makes me realize that selling this is my best bet.

Checked with the recorders office and everything coincides with what he told me! I have two people in the area that are willing to buy the property "as is". We'll see what happens...

Thank you all for your insight! I'm very appreciative!
The original asking price was set by the seller based on him trying to recover ALL his losses that stemmed from the defaulted loan in 07. I totally lowballed and asked for the laughable price of $2800 (the cost of the land) and he basically said, "H*LL NO!" He contacted me later and asked if I was still interested and I asked about the repairs. He could only relay what the insurance inspector told him. I kept bringing up that he didn't even know what condition the house was in and eventually came to the new price.
Because I'm so far away, I extended the period of inspection time to 60 days. I hope that's sufficient to get everything in order. So far, I've found an in inspector in the area who will do the inspection gratis because he's being featured in a newspaper and had none scheduled.
In reference to KW's input, how would I find this information?
Also, the seller seems to be very lax about the 60 day inspection period. I thought he would be upset. Should this send up any red flags?
Thanks again guys!

Thanks for the boost! I've been at my computer the whole day and was just about to quit with my new venture. Really, very much appreciated!