Posted by Stacy (AZ) on January 27, 1999 at 13:35:38:
Patricia-
For wholesale flipping, the house does not have to be repaired before assigning your contract. Most of the people interested in these deals are in the business of rehabbing properties, and occasionally, an owner-occupant who wants to do the fix-up while living there.
$4K is doable, but the numbers have to determine that. Determine FMV (after fix-up), subtract repair costs, subtract $10K to $15K (reasonable rehabber profit in my area), subtract rehabber holding costs, subtract your assignment fee, and you’ll have the maximum you would make a deal for.
However, if the property has a lot of trash around, and needs minor cleaning or yard-work to make it more presentable and appealing, I wouldn’t hesitate to do this.
Stacy