My 1st CA - Do these numbers work?

[mbshanno 0]

This is my first post, but I feel like I know a lot of the regulars on the forum as much as I've read them in the past month. Anyways, I bought Michael's manual last week and have read through it several times and took many notes. Two days ago I decided to get started marketing for motivated sellers via Craiglist and other FSBO websites. I received 5 emails the next day and after talking with them it seems that one is genuinely interested in a CA. He recently moved to NC and now needs to move back to NY for personal reasons. The house is in a nice and relatively new neighborhood just outside of the city.

 

Here are the numbers:

 

Seller wants to net $145,000

 

Sell Price: $155,000 (comps in that neighborhood are at $154,000)

Rent: $1,100/month (this is reasonable for the area according to craigslist, where else can I go to find rent prices?)

Lease term: 12 months

Rent Credits: $3,300 (25% RC)

Option Consideration: $3,000

__________________________________________________________

Net: $148, 700 ($155,000 - $3,300 - $3,000)

 

Does this look like a deal or are my numbers off? Feel free to tear them apart if need be...

 

Thanks for any and all help. This board and the people on it are awesome!

 

-Brandon

[Doug Pretorius (ON) 9]

Looks fine. My only suggestion is to go for a $5k option fee instead of $3k.

[MichaelC 160]

Greetings, Brandon, and welcome aboard!

Assuming your assessment of the market is accurate, those numbers appear to be very workable. Of course, once you begin marketing the property the market will tell you whether they are or not. And Doug is probably correct. You can shoot for option consideration in the $4,500 to $5K range. That's approximately 3%. Not unreasonable or unrealistic. Let the t/b talk first and tell you what they have to put down. You can always go lower if necessary to seal the deal.

[pilot76180 51]

Like they said, I'd go for a higher option fee.

Since when they go FHA they'll need to show or have $5400 down, go ahead and get $5k and then all they need additional down is $400 or whatever.

On the monthly, I'd raise it to about $1295 if the market will bear it.

Go to realtor.com and also rentalhouses and rentals.com to look for houses for rent that are close by.

When you see the rental value, see what the approx value is on the tax records compared to the house you are working on.

See if you can get it closer to $1295, or at least $1195.

The reason is to keep the payments closer to what they will be when they finance, and include PITI.

[trashad 0]

This is my first post, but I feel like I know a lot of the regulars on the forum as much as I've read them in the past month. Anyways, I bought Michael's manual last week and have read through it several times and took many notes. Two days ago I decided to get started marketing for motivated sellers via Craiglist and other FSBO websites. I received 5 emails the next day and after talking with them it seems that one is genuinely interested in a CA. He recently moved to NC and now needs to move back to NY for personal reasons. The house is in a nice and relatively new neighborhood just outside of the city.

 

Here are the numbers:

 

Seller wants to net $145,000

 

Sell Price: $155,000 (comps in that neighborhood are at $154,000)

Rent: $1,100/month (this is reasonable for the area according to craigslist, where else can I go to find rent prices?)

Lease term: 12 months

Rent Credits: $3,300 (25% RC)

Option Consideration: $3,000

__________________________________________________________

Net: $148, 700 ($155,000 - $3,300 - $3,000)

 

Does this look like a deal or are my numbers off? Feel free to tear them apart if need be...

 

Thanks for any and all help. This board and the people on it are awesome!

 

-Brandon

 

 

 

 

Brandon,

 

What happened to this deal? I'm a newbie and I'm interested in the details.