All Forum Posts by: Marc Hardy

 Thanks Chris,

That's what I'm thinking. I'm in Indy but the neighborhood where it wouldn't make sense I feel. But they did let me know the price may be negotiable.

 Thanks Dan!

I didn't know that about ADU square footage not being counted the same. That's helpful.

I am considering a wholesale deal on a triplex. It is fully rented with gross rental income currently at 2600 per month. It's a 3bd 1 bath, and an additional 2- tbd/1ba units. The asking price is $253k. One option for value add is an ADU where the current garage and carport are located (900 sq. ft.), Another option is renovating the kitchens and bathrooms. Lastly is finishing the basement (would be an additional 1400 square feet).

I'm leaning toward doing the ADU or the basement. Based on the additional sq footage, the ARV after the ADU would be $487k. Based on the additional sq footage with the basement, the ARV would be around $550k. My concerns are that after refinancing with an ADU, the margin is a little too close for comfort (roughly 40k difference). My problem with the basement is, I'm not sure if the rent, even after being raised, will result in a cash-flowing property.

Knowing that the one-time showing is happening in 24 hours, and offers will be collected right after it, what would be your next steps? Which way would you go, or would you even do the deal at all? I am looking for any guidance. Thank you!

Thank you all for your help so far. 

I do have a partner there who has gone through all of the properties and sent me photos and videos of each one. All repairs seem to be cosmetic as they are all being lived in now. 

The comps seem to be a little misleading because there simply aren't many to look at. Also, he already has a team in place that handles all lawn care, maintenance etc. that he is willing to pass on to the buyer.

After further research, the trend has only been downward in the last couple months but has remained steady over the last ten years but doesn't seem to be going up.

Would you all suggest getting a contractor's estimate before making him a counter offer or can I wait and adjust my offer later depending on what the contractor finds?

Hello All,

My partner and I are new to wholesaling and would like some advice on how to approaching our first potential deal. 

The seller is old, has a full functioning business and lives 75 miles from the properties in the midwest. He simply wants to rid himself of the properties so he doesn't have to worry about them anymore. (He's owned them all 15+ years). 

As we live in the Bay Area, we don't know if wholesaling,convincing him to owner finance,  or finding funding to put a down payment is the better option. We currently have no capital so we would need to find some type of financing to take on the properties. 

Real Estate has been declining in this city as well, but the seller makes a good amount of money on rental income each month and has for 15+ years. 

Any and all advice is welcome. THANKS!