Methods For Analyzing Rehabs?
Currently I own properties that I rent. No problems except general maintenance. However, I like the idea of getting into fixing and flipping properties (doesn't everyone?) I am fairly handy myself but not against contracting either and long as the "numbers add up."
Where would be a good place to start understanding how to analyze distressed properties for a good return?
Books, you guys, other forums, etc???
Thanks!
-Newbie :-D
Read "Buy It, Fix It, Sell It...PROFIT!," by Kevin Myers
It's been called "the rehabbing Bible."
[addsig]
Thanks Monkfish. I was actually trolling around and saw a few others recommend that as well.
I will take a look!
[edit]
Just bought it! $15 w/ shipping used from Amazon. [ Edited by vvv90 on Date 08/17/2004 ]
My general rule of thumb is to look at VERY similar houses in the same neighborhood that are in good shape and see what they are selling for. Mind you, you'll want to know the actually selling price and not the listing price as there is usually a big difference between the two. The rest is basic math. If the avg similar home is selling for $300k in good shape and yours is selling for $200k and needs $40k in repairs, then you stand to make $60k gross profit.
The Myers book is definative.. Then you might try a book by Decima "investing in fixer uppers"
There are several courses out there as well, i.e. Robyn Thompson etc.
buy it, fix it, sell it: profit is a good start so is "flipping properties" both by kevin myers....km[ Edited by kenmax on Date 08/18/2004 ]