Posted by Tom-FL on July 23, 2003 at 20:21:18:
Well, 100k is way too high unless you want to live in it. A lease/option could work too, but it’s skinny.
The first thing you need to do is rein in those comps. 20k variance is too much in that price range (18%). Try to nail it down to 5k or better.
Now, for argument’s sake, lets say you peg the comps at 120K (Fully repaired, market ready):
ARV * 70% - repairs - wholesale profit = Max offer
84K - 3500 - 5000 = $75,500
If you wanted to wholesale it, you should settle at 75, and start much lower to leave negotiating room.
Buying at 100, and selling at 110 is not an option. You’ll be at break even after closing costs and a few payments. That’s without even repairing anything.