Hello everyone,
Looking for some good advice and/or a mentor to help me through my first few deals.
I just received my first potential lead from Driving for Dollars hoping to wholesale my first deal. This property is a 1/1, 500 sq ft sfh, living room, kitchen and small back sunroom/breezeway with a basement. Roof is 30+ years old as is HVAC. I am new to comps and saw that a 2/1 home in area with 850 sq ft sold for $274,000 on 12/2021. I have a realtor friend helping me out with a realistic ARV. (Waiting for comp) I just used $190,000 as a safe starting point.
Seller is an elderly person living there by themselves with a $50,000 reverse mortgage.( I assume he owes that back to the bank when he sells the house?) He does not owe any back taxes he said. I am communicating with one of his friends who called me to inquire about an offer. He mentioned the owner would like to pay off the 50k and put some cash in his pocket and he had a place to move into. When I asked if he had a price in mind and it seemed he just made up a number, he said $250K. He said that would be enough to pay the $50K and have enough for living expenses. My rookie guess before using the calculator was an offer of $70K. I would like some advice if my numbers are correct, especially my rehab numbers. And how should I approach the situation when making an offer knowing that the offer will be much less than what seller is expecting. Thank you all in advance for any help.
