Newbie Help! House In Rural Area To Rehab
The bad news: At this point the house needs to be connected to the county water :
650.00 for the meter and a ditch and lines to run to the road. Maybe 1500 total?
Alternatively, the well pump could be replaced at about the same cost.
It needs some sheet rock repair and some jacking due to settling. I have various reports on the settling--my own feeling is, it might be leveled and piers replaced, or the new owner might choose to install a cinder block foundation.
Her dad used hand hewn wide pine plank floors from the house he was born in for the floors; there is sub-flooring in the kitchen area, but in other areas, might be redone or used as sub flooring for floor tiles or laminate.
The stairway to the second floor needs replacing---at the high designer end of estimates, a new owner could put in a spiral kit to open up the space for about 1000--otherwise a loft-type ladder would be perfectly www.compatible.The good news: The house is stick built, really cute, and while not large, has a great feeling of space with a cathedral type ceiling in one part, with a skylight and other features. The property itself is quite beautiful, and currently surrounded by horse pasture. A fine building lot, if nothing else.Without repairs (according to the local realtor) it would sell for 26,000--30,000.
With repairs, and cosmetics, it would go considerably higher. Many local props in that area are selling for up to 80,000 for comparable space simply because it's drive able to LA. approx 40 miles, and since they've put in gambling--the area is really booming.
Thanks in Advance
You're welcome.
I wanted to know if this is a good deal?
Would someone please read the information and tell me if this is a good deal. Please!!!!
What can you buy the property for?
How much in repairs?
I need much more information from you before I could offer you any advice regarding this deal. Lay out some numbers and we can go from there.
Dave
Repairs are 17,000
Selling price is 40,000
ARV is 70,000
OK
you still don't have all the figures. ON the face of it I think the deal is too thin. you will be into it 57K for a 13K profit. You have not figured in holding costs, an emergency amount for when you find something new that needs fixing etc.
Aditionally the stairs you mention may not meet code, in fact I am almost sure it does not.
If you send me your email I will send you a copy of a spreadsheet that I have used and worked on for some time that helps keep me from forgetting important things like holding costs etc. You can use it and let me know how it works and if you have any suggestions on improving it that would be good too.
You are not ready for this yet and I would pass...
Get the book BUy it Fix it Sell it & Profit and read it first..
Luck!
[addsig]
Thanks for the Great Help
Putting it on city water is a good thing.
Access to second floor with a spiral staircase of a ladder? That's really, really bad. Really limits the access and who can use it. Every see a 60 year old lady try to get a mattress up a spiral stair case?
You keep saying the "new owner could..." are you trying to wholesale it? Even thinner deal for a rehabber with you in the middle.
Joymarie;
I think your estimates for the connection and spiral staircase is on the low side.
You need to figure in taxes and insurance if you plan on leeping it for a rental.
The purchase price seems a bit steep but you may be able to have them come down a bit
If it will sell for 26 to 30K why are you willing to go to 40K?
It may be a good deal but do your due diligence, take a look at it and dont let your emotions be the deciding factor.
Thanks for all the excellent advice!!!