Re: Possible 1st deal but scared! - Posted by phil fernandez
Posted by phil fernandez on April 18, 2000 at 07:44:12:
I don’t see a deal here. First off where did you get $54,125 as FMV. There is no way that you can pinpoint FMV this exact. But let’s assume that the market value is $50,000. You had mentioned that the range of values in the neighborhood are between $30,000 to $50,000.
You will have to work backwards to arrive at a price you can pay.
- 5,000 holding and selling costs
- 5,000 cushion for miscalculation
-15,000 your expected profit
$10.000 what you can pay for this rehab.
For your first deal I wouldn’t attempt a rehab especially one like this where you will have major expenses with the old plumbing, old wiring, termite damage and 45 year old windows that may need replacing.