Nice Deal Pickup today

David here, so far October has been a bit of a slow start. i have done so many deals lately i need to catch my breath. today i bought deal 46 for 2006. A nice 3 bed 2 bath brick home built in the 50s that with probably 10k worth of work should be worth about $80-85k. In memphis anything that retails over $80k is a pretty decent moving area and is fairly safe. When i got the lead the seller had stated they owed nothing and would like 40k for the house and they wanted to move out of town. Well based on the comps and the fact this house is tax assessed as a 3 bed 1 bath home i thought i needed to go take a look. even a 3 bed 1 bath home in that neighborhood is worth about 70k. anyways i got there and the place is a mess but mainly needs cleaning, new paint, redo the hardwood floors(about the same cost as adding new carpet) new light fixtures, clean the outside brick with pressure washer or acid wash. anyways i offered the seller $30k and he thought about it for a minute and said he needed to talk it over with his daughter and as i was walking to my truck he asked if i could cover about $1500 in back taxes for him and i said i could probably get that worked out for him. anyways today he called back to tell me he would accept our offer and so i will pay $31,500 for it. i think i can clean up the house for 10k or less and be in it with a very good profit margin.

now i always try to wholesale houses first and i will probably try to wholesale this one at $45k as that still leaves plenty of margin for my potential customer. if it costs them $10k to fix it up then with repairs they will be in it at 65% of value which is a great deal for them and $13k for me.