Posted by Tim on April 11, 2007 at 11:07:12:
Why are you dealing in such small margins? You need to think bigger in my opinion. What about fix up costs, holding costs, utilities… and all of this rides on the fact that the FMV is 128K and that you could get that price once it sells not to mention realtor fee’s Closing costs and the like.
One little misstep and you will be losing money.
I would not do this deal and focus on deals that have a much bigger equity stake to work with.
Tim - VA