I received a phone call yesterday from a yellow letter campaign I sent out. Motivated seller because he recently moved. However, he is firm on his price. My plan is to fix and flip this property, but I ran the numbers as a rental to see if it cash flows. (It does not). Basically, I don't want to put myself in a bad situation if it doesn't sell. It's a 2 bed, 1 bath colonial in Teaneck, NJ and the seller wants 280K. He said the attic could easily be converted into a 3rd bedroom, and that the kitchen was recently remodeled. We agreed that I would give him a call if I am willing to offer around 280K.
Reason for this post: The ARV is 350K. So if everything is pretty fixed up (as the seller) says, and I convert the attic to a bedroom, I think this is a good deal. Since this would be my first deal, I need an objective opinion. Should I take the risk or not since it doesn't cash flow?
Any comments would be greatly appreciated!
