Is This A Good Deal 1st Rehab Project

I found a 1500 sq ft brick ranch in a neighborhood where the homes normally sell for $120-$140K - It only needs updating about $11K in work I should be able to buy it for around $82-$85K -

Also, what is a good rule of thumb to get the home turned around to sell. I was thinking about 30 days to rehab and 30 to sell. Is that realistic? Homes usually sell fairly quickly in this neighborhood.

Comments(3)

  • InActive_Account8th November, 2004

    Based only upon what you are posting here, and using the most optomistic of your ranges, it sounds like you should by 10 of them. I can do simple math and 82k + 11k = 93k, doubling your costs for the hell of it is 82k +22 k =103k.

    140k minus 103k = 37k in profit.

    The question is how close to the optomistic factors of your post will reality prove to be? Nobody here can guess that based on a few sentences you posted.

    Personally I would never use 30 days to sell as realistic no matter how 'fairly quickly' you think homes sell in this neighborhood. I would give myself 6 months no matter what. I look at worst case scenarios, not best case when it comes to investing.

  • compwhiz8th November, 2004

    Yep, recent deal IMHO. I purchased a house for $82k, spent $25k rehabbing, and sold for $140k. So, if you're confident that you can fetch at least $125k for your house, go for it. Even if you don't make as much money, you'll get your feet wet.

  • DavidMOcala9th November, 2004

    The math looks good, but realize that once you get a contract, many lenders take 30-45 days to close. Rehab is up to you, but figure 90 days minimum to list, put under contract and close, assuming everything else goes your way.

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