How do I package this opportunity for an investor?


#1

Hello, this is my first post to the forum. I see a lot of great advice on here about structuring deals, so im hoping you guys can help me too.There is a sfr with a highly motivated seller in Michigan. I would like to flip/assign this deal to an investor. The numbers and estimates are below.

  1. Based on these estimates is it viable for an investor. 2. How do I structure the contracts.

Mortgage and taxes owed: $ 14500
Repairs needed: $ 5000-10000
ARV based on comps: $ 30-40K
Rent based on comps : $ 750-900
Neighborhood: not great but trending in the right direction.

Thanks in advance for any advice or expertise you can provide. Please contact me if you invest in the Michigan market.


#2

It’s a borderline deal, unless the neighbor is really up and coming. Putting up a sign that says “Historic District” does not make it so. Lots of cops cleaning up crime, investors doing rehabs, and a Starbucks coming soon are the real signs of an up and coming neighborhood.

At a total of 25k all in, it’s not a great cash purchase. If you can sign a contract to take SUBJECT TO the existing mortgage and an investor can put 5-7k in rehab to make it rent ready, I’d say it’s a reasonable deal to assign for a few grand.

Also depends on whether there’s substantial back taxes?


#3

Thank you for replying, I appreciate the great advice.