I'm looking for my first (killer!) deal. I just looked at a bank owned property in a very desirable neighborhood. Good floor plan, nice (overgrown)yard The bank is asking $188,100. It's only been on the market a few days. They will take only cash or a rehab loan. The comps tell me that when it is rehabbed, it should sell for $340-400,000. It very well may need $100,000 in rehab. The roof apparently leaked until it literally collapsed into the house in several spots. The wall beams are showing through the dry wall in some rooms from having been wet. The previous owners walked out and left much debris in the house and yard. Etc, etc.
The realtor is telling me that there are likely many offers in already. He tells me it will probably sell for over the asking price. Maybe as high as $22000. Is this likely??
How much profit would you consider necessary to take on such a project?
Thanks so much!
Blessings & Favor,
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