Flipping A Junker
Hi all,
I just found a home on 1.68 acres in a great neighborhood. The surrounding homes are valued at 129K-167K. My rea had difficulty finding comps because there is nothing that compares to this place. It has a tin roof and wood siding. The owner died and never did any repairs while living in the house. It should be condemned rather than repaired.
How do I figure out costs of repairs for a house that is a total wreck? If I were a rehabber I would tear it down and start over. I'm a bit confused about how to approach this, any help would be appreciated.
thanks
andrea 
Not trying to steal your thread, but I have a similar situation. Any advice would be greatly appreciated.
Jesse
What does land go for in your area? That would be $120k in mine, for example.
Do you know rehabbers in your area?
Just a suggestion...
You could call a demolition company and get an estimate for tearing the place down and removing the debris. Follow that with a call or two to local home builders for a rough per square foot estimate for building the new place.
Otherwise you could make a list of the individual repairs and consult with local contractors or handyman types for estimates. There are also repair and remodel cost guide books on the market that can get you near to the costs.
Hopefully you can acquire your prospect dirt cheap so you can be rewarded with lots of cash.
Hope this helps.
test
Hi again,
I took the advice that I received here and asked a contractor to take a look at a junker I want to make an offer on. The seller wants 84K and the contractor says it would cost about 150K to rebuild the place. The house has lots of water damage and mildew and moss growing inside. The floors are decaying, needs new roof, etc... He suggested gutting the place and rebuilding. According to him the house is a deficit to the property and he'd only pay the price of the land.
Question one: How do I determine the cost of land in the area? I checked the tax records and saw that the land is valued at 23K. Is the information on tax records usually good information?
Question two: The house was built in 1910 so theres not much to really compare it to in the area. The other 3/2's in the area range from 248K to 120K giving me an ARV of 164K. Would it be reasonable to buy this land for around 20K and sell it to a rehabber for about 40K? Or do I offer 10K and sell it for the tax record price of 23K?
Question three: Would the seller even accept an offer of 10 or 20K when they are asking 84K? The place has been on the market for almost a year and they don't seem too anxious.
Question four: Is there a way to motivate an unmotivated seller?
Question five: Do I just need to walk away from this deal?
As you may be able to tell, I'm a bit confused and in need of experienced counsel. I'm not sure if this is a profitable deal or not at this point.
Please help!
andrea
get a comp on the land only, then as mentioned by 'unpipres', get estimate on demolition cost and try to set your flip price on that basis.
hrash!
thanks for responding. how do i get a comp on the land only?
andrea