OfflineWhat percent equity is good after repairs?
I was going to offer just enough, so I can come
out with at least 30% equity after repairs, closing,
and taxes, for 3 months, while I am holding it ...
This house is $300,000.00 FMV and needs updating which I am estimating to be around $20,000.00 ...
Selling for $329.9K
FMV $300K
Bought for $180K
Closing $6K
Taxes $700 month (sold 3 months) $2,100.00 total tax
Rehab $20K
Agent fee for selling $18K
Total spent $226.1K
Selling for $280K
Minus $226.1K already spent
Equals $53.9K Profit ...
Is this being too gready?
Please let me know how you do it ..
Thank you,
John Morrison Jr.
The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself.
Therefore, all progress depends on the unreasonable man ... George Bernard Shaw
Luck Can Beat Skill Any Day ...
John Morrison Jr.
Hey John where are you from? I knew a John Morrison that I used to work with. Are you maybe his son? Not sure if he might have children old enough.
Sounds like you have done your homework. I am new to this so not sure if it is too greedy or not.
Just to be clear, after rehab is the value $329K?
If it is and you are offering it for $280K then it's a win/win for all parties. No matter what you're making, the end buyer is still getting a good deal. The buyer is getting a rehab house for 15% less than its fair value.
FMV is $300K and rehab I am guessing about $20K,
but my guesses are usually high.
FMV/ARV $300K
Rehab $20K
I have to buy with this much equity, so that
I can offer them below FMV and move them ASAP
I am from Bayonne, NJ and my father lives on
top of the Sourland Mountain in Neshanic .. Hillsborough, NJ
I have 2 sisters Kim and Shannon.
The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself.
Therefore, all progress depends on the unreasonable man ... George Bernard Shaw
Luck Can Beat Skill Any Day ...
John Morrison Jr.
I am not sure, if a low offer would be faster
excepted by an Estate or a Bank
This is an Estate ...
The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself.
Therefore, all progress depends on the unreasonable man ... George Bernard Shaw
Luck Can Beat Skill Any Day ...
John Morrison Jr.