Rehab Biggy
Looking at a 3/1 flat rancher 1260 SQFT
50k to purchase
Comps strong @ 95 to 110k
rehab possible 35k +
house basically needs to be gutted
bathroom,kitchen,laundry and one bed need it anyway. This would be my first deal, So I feel to large of a project for me.
Do you think it would be a good Bird doggin house for me to get under contract and pass on to some one more established than I?
If it really needs 35k work then I don't see a whole lot of margine there. If it really needs that much work I would never do the deal myself. Figgure in 10% cost overrun, realtors fees, holding costs, etc and you make very www.little.That being said, 35k is a bunch to put into a 1200 sf house, I bet you could do it for less. But, if this is your first rehab, perhaps you should try a smaller deal for your first dip in the murky waters.
[addsig]
Going to see if they will take 40k and get signed contract dependant on financing, then try to sell to a better established rehabber, for a fee of course
See if you can the property under contract, and then get a reputable contractor to the property to give you an estimate for the repairs. You may find there is more profit there than you think, and on the other hand you may use his estimates to negotiate an even better purchase price. Having a contractor's estimate would also be beneficial if you want to wholesale the property. Good Luck!