here is something ive been looking at.

-bank repo
-single family home
-2 car garage
-Year Built: 1949


Possible Lead Based Paint.

---- would that be a good deal?

– could you list some good deals and some bad deals so i can get an idea please.

what’s your goal? flip it? what roi do you want if you’re not flipping it? are you looking to build wealth or make a lot of money? hard to analyze a deal if you don’t “begin with the end in mind.” know what i mean?

oh sorry i forgot.
i want to rehab/flip


I’ve been looking at a car to buy:

2 Door
Absolutely Beautiful!
Black Exterior and Black Leather Interior
CD/power seats/windows - loaded, etc
No Damage History

Price: $14,000

Do you think this is a good deal?


Looks good to me Mike. Make sure and have them throw in the new floormats and it’s a slam dunk!! :banghead

What are comps in the area for similar homes?

:cool a good deal >>> this would be one that makes money and you feel good about doing BUT really it all depends on your area what would be good in say portland or may not be a good deal in spokane washington >>>>>> you need to know your wrea and with that comes comps and all that stuff good luck

omgxitsxshawn what I do is work backwards. First I establish the criteria for what is a good deal. Then I look for whatever is closest to it at any given time. For example, I know that a 3 bedroom 2 bath 2 car garage 1500 sqft in this neighborhood sells retail for $100k. That is a benchmark I use to evaluate any deal I look at in that neighborhood. I can then look at a house for sale for $45k plus fix up and figure out if it is a good deal or not.

The key is that a house will sell for what all the houses just like it in that neighborhood sell for. No matter what you do you can’t get more for it than that. It doesn’t matter what color you paint it or if you have gold plated toilets. You won’t get more than retail for a house. Now you can mess it up and not get retail, but assume it will sell for no more than the rest of the houses sell for. So that is a HARD ceiling. Calculate your profit target from that number.

House has got four strikes against it. I generally won’t take a house that has more than two.

see this is where i get confused. i look at the mls for houses in my town. several houses look about the same as the repo i was looking at.
200k for one in tha mls
but then there was another that looked exactly same features but was only 110k

the repo seems to have a lot of damage. how would i know what i could sell it for after rehab.

Im not exactly sure how to read the sarcasm here


I was trying to get you to think about your question and the answer instead of just giving it to you. You’ll notice that Jared was thinking the same thing. The point is that there is no way to tell whether the house you found (or the car in my post) were good deals with the information given.

In my post, I didn’t tell you what type of car it was or the year. THERE WAS NOTHING TO COMPARE MY CAR DEAL TO. If the car was a 2005 Mercedes SL500 Convertible, then it was a fantastic deal. If the car was a 1979 Buick, it was a horrible deal.

The same principle was true in your post. You gave a few details about a house you found, but didn’t give the IMPORTANT information. What you really need to evaluate this property for a rehab/flip is purchase price, rehab cost, and projected sale price (market value of similar houses). That’s what I was trying to get you to discover.


omgxitsxshawn don’t look at asking prices that is what you find on the MLS. Look for sold comps. What have the house actually sold for. Ask any real estate aget that you trust to give you the sold comps for this house.

omgixtshawn, yes, look at comps, that is the only real way to tell before you make a deal. I am in the new home business but am looking into doing some rehabbing. I play around with deals and their numbers at work for fun b/c I don’t feel like I’m prepared to buy yet. I’ve been close to pulling the trigger just haven’t. I don’t have access to the mls other than some realtors I know and a good appraiser friend. B/c I don’t want to waste their time having them look up mock deals for me I use realtor.com, and zillow and the appraisal district website to get values. Usually all of these are on my taskbar at once and I can navigate around my metroplex fairly efficiently. Granted, these are not completely solid value identifiers by any stretch of the imagination, but through trial and error and verifying what the actual sales price of the property was, I’ve found the values to be within 10% or so. On realtor.com- 10% over, on appraisal district, about 10% under on avg. So many variables unaccounted for though. Zillow could be 10% either way. When I’m ready to purchase you bet I’ll not only be pulling comps going back no further than the last 6 months but also setting appointments with realtors for comparable showings close to where my subject is. Walking through comparable homes and seeing the fine details of tile or vinyl, fixtures, landscaping, mainly scoping for the kind of attention to detail, and quality of materials/finish out in that price range. This will provide valuable information when your doing your budget. Good Luck

omgixtshawn, it seems you are new to this, so i would suggest you find a partner to do your first deal…The very first thing you look at when evaluating a property as a investor are the “comps” in the area.

I have a house for sale When it was first listed in January we had lookers and for some reason no one is looking at it now. Location Downtown Louisville, Ky Victorian Camelback completly rehabed with in the last 4 years. New roof wiring furance air walls redone some new carpet new kitchen
It has 3 could be 4 bedroom and 1 and a half baths.
Even an old shed in the back that could be used for a garage or just storage. It was appraised 2 years ago for 72,500 and we are asking the mortgage 64,500 and we can’t get any takers. Every one that has come along has said it was very nicely done but we can’t get anyone to put there name on the dotted line.
Is the price to low is that why? Because it is low do people thing it is junk house. We had a buyer at 70,000 a year ago but after we moved out she backed out at the closing table Now we are on a fixed income and trying to keep up two mortgages and it is very hard.