Neighborhood: Woodlawn
Potential Asking: 20K-ish
Repairs: 80K
Estimated Rents: 2,400
Notes: Only 2 beds each. Property was abandoned by owners, who now want to sell after getting some serious city violations. Property is severly damaged, both roof and basement have water damage. Taxes are still owed as well. Property can be sold for VERY cheap, so is it a deal or no?
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Well, it looks like Jae is coming up in the wholesaling world. He has learned what he needs to do and is very honest about it. He is setting his sights on getting deals done and reaching out to the connections he’s made. The journey is what matters and it looks like Jae has a great head on his shoulders and there is NO doubt that he can achieve his goals no matter what business he is in.
Let us know what you think about Jae and his journey so far!! Comment below!
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2 thoughts on “Chicago Brick 2 Flat: Deal Or No Deal?! You tell me!!”
RJ,
What you could consider is to buy the property at $15k, and hire a crew, order a dumpster and clean the place up. Dont fix anything. Just cleaning the place will take it from $18K wholesale to 21k. Another step you could take is to strip the place. Basically anything that needs demo and rebuild, like drywall, flooring etc..get it out of there. This will clean up the place for investors to look at the house in a different way, and bring your wholesale to $24k
The numbers dont work on the rental scenario, but if as you say ARV is 230k ( i know, not enough comps), it might work. Its tight, because most investors will look at $80k rehab investment and 2 or more months of work, to at least garner equivalent profit. Not for faint of the heart investor. Even then given the amount of much easier props/profit available in the market today, its a no go to tie that much money in one property for the investor with iffy ARV.
If I won anything, let it be your direct contact (email) info, so we can talk shop and share tips n strategies. Good luck. Peace.
There is too many deals out there in which you have more favorable comps and easier flips. I just did a deal with a short sale in which I took over property at $25k and did literally $3k in rehab and had it rented out within 2 weeks. That is the problem with today’s market for sellers. There are too many good deals for investor. I believe as we continue to rebuild our housing market, banks will begin to lend which will make it more favorable for investors not to pass up these opportunities. Especially as municipalities feel the burn of a low tax base. It will be incentives put in place for investors such as me to take ownership of these properties. The name of the game is cash flow right now. I am not too much concern about ARV, unless I am selling immediately.