What Do You Think???
I'm looking into doing my 2nd property investment. i found a house that was va loaned but is now under a realtor (va contracted they're reo's out). houses in this area go for the mid www.80k.originally under va,the price was 70k (not sure what the new one will be).i just got back from inspecting the house and will need quite few repairs (non structe repairs needed). its an all block house 4/2,1200sft,car www.port.more than likely it wll need roofing repairs,maybe hot water heater,bathroom,baseboards,paint,some carpet,typical rehab www.things.i am having estimated cost of repairs next week by my investing partner family.do i take that figure and subjact into the asking price w/a little extra? and seeing mostly family/friends are doing work,would i work a contract for payment after i sell it? this would be my first rehab project,which i'm working w/a partner.At first i was concerned though that va doesn't own this anymore,negoation would be easier instead of just having my realtor make bid w/out reason of price. any inputs will be greatly appreciated.
ps any good rehab programs out there??
I think your numbers (they are hard to read) seem a bit off.
If the property is worth mid 80's and you pay 70, it had better be ready to sell. You need to get an investment property for 70% of the after fix-up cost, and include the repairs in the numbers.
85k FMV
15k Repairs (With what you describe this would be average)
I would't pay more than 55k for this property.
[addsig]
Thanks for the reply. i was talking it over with my mom (my realtor),and thats exactly the figure she came out with (55k).I'm doing do more research on this property, like how long did it take the other houses in that area to sale and a legit fmv. even if i don't do this one, i still want to go thru the steps. I pulled up a couple more prospects (reo's),i just think this one needs to much repairs,it just more than cosmetics like new roof,new doors,basically new everyhing other than some carpet.