OfflineFirst deal.....Foreclosed property...Need some input for a house we won a bid on. It is a foreclosure bid @ 34,000 and the house fixed up, we are told is worth 60 -80,000. There is plenty of work to be done. A new Electrical Entrance is required. A new roof, and siding. There is outside work to be done as well. Inside the hardwood floor buckled in one corner of the living room from water damage. Basement was t1-11 but because of the flooding upstairs got wet and produced mold in the basement. All the t1-11 will need removed and the mold treated. Also harboring carpenter ants. Needs new furnace and possibly hot water heater. It is a two bedroom in a great neighborhood. The structure is sound. Is this a good investment considering all the work that needs to be done?
Advise
Posted on: Sat, 09/19/2009 - 23:40
cascott,
It sounds like a great deal of REHAB for the numbers you end up with in ARV!
What is your question,Not too say great job of taking action!!!
Invest in yourself!
What is ARV? and are you saying that this is probably not a sound investment for the amount of rehab that needs to be done
The ARV is "after repaired value". You want to add up all the costs when purchasing a property. These costs include: purchase price, repairs and carrying costs until rented or sold. This deal sounds like it may not have enough profit margin based on all the work that is required. Thus, for a first deal you may want to try to find a home that may not need as much extensive work. When you do repairs on a home it can run 2 to 3 times more than you first believe becaue as you tear into walls, other issues or problems may surface. I hope this helps. Good luck with your future deals. Believe and Achieve!
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Thank you. We decided to forego this one. We were apprehensive and now that we have said no we feel much better. Thanks for your imput
im not a rocket scientist but fromwhere i sit it sound like it will cost more to rehab that property.so maybe you should keep as rental prop.to recover the cost instead of selling after rehab.
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