Foundation Issues, Are They Worth The Trouble?
Does anyone have any experience rehabbing a property with foundation issues? Is it difficult to find a buyer after the foundation has been fixed as part of a rehab? I know that buyers avoid foundation issues like the plague but if it has been fixed, with a transferable warranty, is there still a problem?
In particular, I found a prop that has been on the market for 6+ months, orginally asked 160k, down to 130k, and still no bites. The issue is the foundation. What would be the potential if I low balled it at 115k, fixed the foundation, along with other cosmetic stuff, and sold ~150k, or so? Is it worth it?
iglooman
If you bought it at $115K and sold it at $150K, and subtract a realtor's commission, closing costs, and holding costs, that leaves you with about $15K profit, minus what you spend on rehabbing. Is there any profit in this property?
iglooman... depending on the size of the property and location (i'm assuming Plano/Greater Dallas)... 1600 sq/ft (avg)...You're probably looking at 10k+! Also, make sure you know who you're hiring to do the JOB! I know of atleast 5 homes that got crooked.... I mean that literally, their houses are STILL crooked.
so, do a little checking around...
Hope that helps!
Hey,
Maybe I am stupid, but I don't see what difference it makes as to what the repair is.
The formula you use to determine if you buy it is the same:
Total Money In + Minimum Profit <=Selling Price.
If it works, the repairs can be a new kitchen or roof or foundation.
You have to get good qualtity workers, no matter what you are doing to the house.
Most repairs are easily fixed. Paint, carpet, plumbing, electrical, roof, etc.
Foundation problems are NOT easily fixed (and VERY expensive).
I personally stay away from homes with foundation problems after being burned once.
Hope This Helps!
Mrs. Meltzer
See if the seller (or you if need be) will come out of pocket with a structural engineer report....your probably looking at $250 - $500.00 for a report.
Then you both will know what your looking at....
Good Luck