What Do You Think About This Deal?
Hi,
I have a potential deal that I am considering offering and wanted to get a 2nd opinion or two about my offer. Here are the numbers:
ARV: $447.5K
Ask: $397.5K
65% off the ARV: $271.2K
Here is what Im thinking. I will negotiate a contract to buy @ $271.2 (cash). The house is in pretty good shape, so I dont think it will need to many repairs. I estimate that it should take about $75k to cover carrying cost, repairs, and assignment fee.
So that would mean an investor would have to put about $75k in up front, totaling up to a total cost of $346.2k to the investor.
Im thinking that leaves him/her around $101.3 in equity after everything is done based off the ARV.
What do you think. Is that a good deal?
Can you buy the property for $271K? or are you thinking about offering that amount? That is more than 30% less then they are asking?