@Greg Scott The very high liquidated damages amount would greatly discourage the sellers from thinking about pulling a fast one and backing out of the contract w/ work already done. Re: "never rehab a property you don't own", would your answer change if the sellers paid for the rehab and I reimbursed them? Not being able to rehab before closing would cut into my bottom line...I believe $10K in rehab would generate at least an additional $25K in sales price. Also, I want to be in and out of this property as quickly as possible.
@Mateusz Prawdzik I doubt I would find a cash buyer at this price point, and there's not enough meat in the deal for both me and an investor, which is why I'm thinking about listing the traditional route. I look at annualized ROI, not total ROI. Let's say, for argument's sake, I end up making $15K and to be conservative, we'll say it takes me 3 months to make that $15K. Isn't that an annualized ROI of over 25%?
@Natalie Kolodij I am a licensed real estate agent in NJ. An assignment might be ideal, but since I gather assignments are not likely/not possible for end buyers w/ FHA or conventional financing (again, correct me if I'm wrong), I think it would likely be a double close. As long as I would be executing on a separate contract w/ the end buyer and have permission of the seller to list on the MLS, what would be the issue w/ listing on the MLS?
