Been Going Back And Forth On This One
Seller owes $25K. Rehabbed Fmv= $70K.
Needs $15K work. Owes $3K lienable utilities and $2K taxes. Seller also wants $5K to walk.
Could get $800-900/mo rent
$20K in equity after all that work---worth it?
Seems like a good deal
What will you do with the property if you purchase?
80% return on your cash seems decent enough if you sell at ARV. Your return will be 100+% if you sell on contract for deed with a 2 point interest rate spread and another $5K on the back end.
[ Edited by NewKidInTown3 on Date 02/23/2006 ]
will probably rehab at lower end for @10K and then rent out.
if I want to sell at 70K, rehab will prob be 15-20K.
What is it worth right now? Not fixed up....
I dont believe you should ever base your numbers on the value after you fix it up.
What happens if you cant fix it up or you find additional damage?
[addsig]