Linked for you:
https://docs.google.com/open?id=0B2Lv_eqzK4FEVDNfczczb2xHZ1U
With 50 rehabs under your belt Dustin Poole , you’re the best one to know the formula that works best in your area. It’s very regional. Out here in Los Angeles most flippers would kill for a 60% deal. Our average borrower pays 73% and I suspect your potential buyers wish they could buy at 60% but would pay more.
Many forget that it’s not percent you take to the bank, but dollars.
A low dollar flip, as you presented in your example, would be extraordinarily risky for all but the few who could control their expenses tightly, knew the area well, had good relations with the building department, a great contractor, etc., etc.. This might work for you with your experience but I could see why you might have trouble convincing someone new to the game, or at least new to the area, to buy such a property.
Most wholesalers have given themselves a bad reputation due to greed and incompetence. Unfortunately, earned or not, you’re going to be tarred with the same brush. On the other hand, the best wholesale deals are flipper-to-flipper, so your experience adds credibility.
I assume this is a deal you would normally do yourself and it’s simply extra inventory. If so, you’d probably be better off partnering with someone to build credibility and show them they could make money on deals like this, before they bought others from you outright.
Jeff
