Like I said, I would tell you about the next house.
The fourth was one that was under contract then released. The layout was very odd. I believe at one time it was subdivided into two 1 bedroom apartments. Needs a lot of work as well.
The asking price on the house is $42k, which is $30 a sq ft. Doing the comps, I am getting from $73 to $80 per sq ft. I did see in the comps that there was a house that was purchased for $39k and flipped 4 months later for $179k. Additionally, looking on ZipRealty, I am seeing houses sold in the last 6 months comping at $101 sq ft. This places this house after repair potential value from $102k to $141k.
Now for the rehab estimate. I am looking at $34k in repairs. Probably less. I plugged a lot of stuff in that probably won't need to be done. These all depend on whomever purchases the contract.
My initial offer was $33k on Thursday evening. Today I had a counter offer of $40k. This is within my window of purchase. Since I wanted to see if I could get a little more, I asked my Realtor to see if they would take another $2k off the top. If yes, then we are going forward.
I'll let you all know what happens.
Looking of opportunities in Richmond, VA? Let me know.