Case Study: Rental Analysis That Convinced a Buy-and-Hold Buyer
An Indianapolis wholesaler had a 3/2 ranch under contract at $68,000. The ARV was only $115,000, and the property needed $20,000 in light renovation. At an asking price of $78,000, the flip numbers were thin: maybe $10,000-$12,000 profit after all costs. Not enough to excite most flippers.
But the rental numbers were strong. After renovation, the property would rent for $1,100/month based on comparable rentals. At an all-in cost of $98,000 ($78K asking + $20K repairs), the rent-to-price ratio was 1.12% — well above the 1% threshold that landlords look for.
The pivot to rental marketing
The initial blast targeted flippers with ARV-focused messaging. Two days with zero responses. The wholesaler re-blasted the same list plus 25 newly identified landlords with rental-focused messaging:
"3/2 ranch in Speedway area. $78K asking, $20K cosmetic rehab. Rents at $1,100/mo. Cap rate: 9.4%. Cash-on-cash: 14.2% with 25% down. Full rental analysis and comps inside."
Four landlords responded within 24 hours. The deal page — which now led with rental comps and cash flow projections instead of ARV — received 12 views with an average time of 3 minutes and 40 seconds.
The close
One landlord made an offer at $76,000 with a 21-day close. He specifically cited the rental analysis as the deciding factor: "I've been looking for properties with 9%+ cap rates in this area. Your analysis saved me two hours of pulling my own comps." Assignment fee: $8,000.
The lesson: a deal that does not work as a flip may be a strong rental play. Including both analyses in your marketing expands your buyer pool and prevents good deals from going unsold because they were marketed to the wrong audience.