Single Family Home (3 br 1ba plus) non-permitted 2nd bath and 1 car garage converted to 4th bedroom (w/out permits.)

Southern California - ~10 miles from beach, centrally located in major SoCal metropolis.

ARV: $450,000+
Repairs/Upgrades: $25,000
Estate sale - benes want their money now!
Price: $360,000

Market will probably drop 5% by 12/07.

ARV is conservative based on original 3/1 house not including extra square feet, 2nd bath, 2nd kitchen (probably not desireable) and extra bedroom (garage conversion.)

I'd rather be conservative then have to do a Short Sale for my own proeprty!

What about cost of selling it? RE commission, lender fees, lawyer. You could control these costs somewhat, but there will be costs related to selling. Also, carrying time. Not enough margin for me.

If I took over the current payments (bought subject to) and gave the sellers 1/3 of the projected profit now and the rest after sale (based on real profit) - might that make this more attractive and less skinny?

The reason the benes want to sell now is because they can't handle the current payments.

With 5% depreciation for the market, commissions, repairs, and holding cost, I don't see any profit in there. Now if you dropped that "6" in the middle, that would get my attention.