OfflineThere is a property listed at 519000.00. The property is foreclosed. 3/3 big yard with a swimming pool. ARV is 680000.00. Repair is at 120000.00. Any suggestions on how much should be offer will be greatly appreciated.
Mahalo
Ken
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You use the exact same formula I spelled out in detail on this thread for you.
http://www.deangraziosi.com/real-estate-forums/investing-journals/140407...
Entry #6. Just change the numbers. Write it on a 3 x 5 card and keep it in your book.
Karen
"You're never too old to be what you were meant to be!"
www.deangraziosi.com/real-estate-forums/investing-journals/59128/day-for...
"Shining Like a Star & Dancing on Sunshine"
"Shoot for the moon! Even if you fall short, you'll still land among the stars!"
to contact several local Realtors and ask them to prepare a CMA (comparative market analysis) for you. This generally includes 3 similar active properties for sale versus 3 recently sold comps, and they come up with an average. Now this is probably assuming the properties sold were turnkey (or not-so-bad).
You can use this average and then consult 3 local reputable contractors (check their licenses) to come up with a realistic ballpark rehab cost and go from there.
You can leverage these 3 contractors' bids for your offer.
Then, as Karen correctly suggests, figure in the other factors, like property taxes, holding time, etc.
Good luck! Update us!