Got an offer from a seller to buy her home in foreclosure. Seller mentioned on the phone that she wants 300K for the property. ARV looks to be around 725 k with 150k in repairs. We offer 300k but seller says she needs...

I have an opportunity to get a SFR for 45k that is in a rough area but newly renovated with new hvac, water heater, and roof. rent should be 750 per month, taxes 650, ins 900. assuming 35% for capex and repairs and 10% for PM. assuming 8% vacancy factor and 5% leasing.

Remember the cost for connecting water/sewer or maybe in your area it is well and septic.Great job.

I don't have anything listed for water and sewer or garbage, because I am returning that to the tenants with a flat fee.

Owner is currently paying water, sewer and garbage, but I excluded those expenses and instead will make that a fee for the tenants to pay and added it under other income.

Hi all, had some bad water damage in a duplex of ours in Rockford and we've cleared everything out, almost down to studs and are looking for a GC who can do it all (carpentry, drywall, subfloor, paint, plumbing, etc). 

Better to have a good clean exit strategy even if you are leaving some money on the table by not developing the whole property yourself.

I did not know that every pipe burst or split or that it was not winterized and that the main water line to the house needed full replacement. 

The best way to combat that is probably to get numbers on the table, not only how much the property is worth, but also how much capital it will need for repairs and updates.

Keep in mind that the seller is going to try to get out from the property for a reason, just ask a question and listen, if he's motivated enough they will reveal more than needed OR they will not have enough selling points which could be a bad thing. ie; vacancy rates (leads to knowledge about the area or housing issues the tenants had), water usage (potential plumbing issues), appliances held in the units (leads to how old the electrical is in the home) CHECK IF THE OUTLETS ARE GROUNDED !!!