OfflineHello DG Family,
I am looking for some advice from you guys.
I am located in Santa Clara, California.
I was looking at a property on MLS. Its an Estate Sale, on market for 4 months. Asking is $470,000. FMV of houses in area is $540,000. I am guessing, the rehab cost will be around $75K. other things added I am looking at $125K cost to me. which makes me want to put in an offer or around $400,000 when the asking is $470,000.
My concern is, the house is on a busy street, traffic noise and also, there is a fire station right across the street. Not sure If i will get buyers for this house. i have accounted for 4 months of holding in my price.
ANy help is appreciated.
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Unless you intend to acquire that with creative financing, then you'd be offering too much IMHO. Keep in mind that deal would yield a margin of 25% (actually less since your calculations didn't factor in the cost of money, the cost of the rehab, any holding costs, etc.
Something of major importance is Location, Location, Location. I say to exercise caution and also type in the search field "fast cash formula". Run the numbers and if they do not add up then pass on it. You are after a deal and if you have a buyer/investor that has looked at the deal and they want it then go for it. You want a good deal not problems. I really hope this helps. Its not my intent to discourage you but to help you.