Is This A Deal?
home is in an area that is pretty decent (rental area)
FMV= $67-$69K
Listed Price= $27.9K
Repairs (guesstimate)= $15K
I am looking at offering $23K to start.
How does this sound? I want to take a look at the place this weekend. I heard about it from a RE agent. I get a list of distressed props from many different locations now and I have been digging through them on spare moments and I have come across this one.
Interested in your take on things,
thanks folks
You did not indicate what you are going to do after rehab. If you are not doing the work yourself, you might want a firm contract as a condition of sale.
THANKS...
my plan is to resell the home at market value. Both I and my partner are looking at doing as much of the work ourselves with a few contractors on some of the projects.
want to resell on the market or to a landlord...
If you are looking to turn the property, the holding costs are very important since most people underestimate them. Most of the cost uncertainty relate to time. You have two major components-- the time to do the rehab and the time it takes to sell the property. Estimating the actual out of pocket costs for the rehab usually has less uncertainty. Besides interest on any loans you may have there are insurance, taxes and sales costs as well.
If you get the property at your proposed offering, you can probably make some money with this one, but you should run a spreadsheet analysis to examine the possible outcomes. Hopefully, you will get some responses from people who do many rehabs (I do not) who will give you additional direction.