I would greatly appreciate any advice on my 1st potential deal. I haven’t done any deals yet but am experienced in building modular homes and dealing with contractors, budgeting etc so I feel confident that once I get started I will be able to handle that end of the business. I have all the typical questions of a newbe trying to take that 1st leap.
Is this the right one to start with? Where will I get financing? Am I missing anything? etc… etc…
The potential project
A single family home FSBO in desparate need of a renovation. A complete gut project. 3 bed, 1 bath home about 14oo sq ft.
Work to be done:
New Carpet throughout
Remove a 6 x 8 addition and replace for laundry room
install new HVAC
Rebuild from porch roof - concrete pad ok
General yard cleanup
Remove old sheds
Roof is fine
Asking price is 150k comps are 279-289k
I estimate the cost of the rehab to be 65k
I am adding another 10k for misc expenses, marketing permits etc.
Based on these numbers what would be the most you would offer on a project like this? Am I missing anything?