I have come across 2 possible deals but I'm not sure how to approach it.
Property: SFR/3 beds/2 baths/ 1450sqft
Asking price: $27K
Retail Value: $51K based on appraisal
Loan balance: $17K
Behind on payments $600
Repairs required = guesstimating $8-10K (flooring, cabinets, tap & bed, trim, paint, fixtures, a/c compressor).
Reason for selling: The owner is locating.
Property: SFR/4 beds/2 baths/ 1750sqft
Asking price: $??
Retail Value: $172K based on appraisal
Loan balance: $72K
Behind on payments $2,600
Repairs required = minor.
Reason for selling: financial
I know that I do not want to hold these properties because I only want to do cash deals right now. I know I could assign them to a buyer on my list.
What offer price could I present in these cases? I would like my profit to be $10K or more. $5K profit would be the minimum desired.
Any suggestions most welcomed.