OfflineI found a FSBO that noone has lived in for 5 years..It needs work..I can make it liveable for around $2000..Because i am a contractor by trade(coleman tx.)Its 1000 sq. ft. 2br 1 bath.Hes asking $10,000 Or best offer..with it needing work what would be the lowest price i should ask for it?Also if anyone would like to be my partner i could fix it up myself.We could probably get it for $5,000..and charge 4 to $500 a month or flip it to another investor.either way i think its a great deal.the man doesnt live here anymore..I just bought the RBBP and just started studying it.I havent done anything yet.have no buyers,agents,nothing..Need help on this deal..Thanks to all.
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michael rambo
First off... Great job taking action and finding a potential deal!
Kepe it up!
The first thing you need to find out is how much the ARV is. ARV is After Repair Value... when all repairs are done, what could it go for on the retail market?
That will help us get a better idea of all the other numbers.
Keep it up!
Tom
I agree with tom, you need to find the ARV to determine how much in would sell for in the current market.
Great Job.
Mark
Thank you so much.Also i am about to talk to an agent for my eyes and ears.What exactly do i say,ask?Thanks
michael rambo
Great comments everyone.
I completely agree that finding out what the ARV for the property will be. (After Repair Value). A good investment minded real estate agent will also be able to let you know how much the property will sell for once it is fixed up. If you have an extra good agent they can even tell you how much the property would sell for if you were looking to do a quick sale.
For Example:
The property would sell for $35K but it would take 90 days to sell.
The property would sell for $27K but it would take 45 days to sell.
Also if you needed to sell it in 30 days or less, you would need to sell it for $20K.
If you agent is able to give you scenarios like this, hold on to them because you have a great agent to work with.
Hope this helps.
Happy Investing!