Comps in the area go for $63 a square foot in less than 30 days-So I could sell very quickly at 75K-80K
House has significant fire damage and cleanup would cost 15K and then to rehab-who knows? maybe 40K???
I am attempting a shortsale with Wells Fargo and dont know my exit stategy:
The first thought was flip the lot but I dont think that would sell quickly even thought the lot is worth 25K on its own.
Then I looked into demo (5K) and then a modular home but HOLY COW!!! Prefabs are expensive! (They are 75-100 dollars a sq foot!!!) How does anyone ever make money with these things?!?!?
IS THIS BEYOND HOPE? WHAT AM I OVERLOOKING?
Thanks so so much for taking a look!! I really appreciate it!
Sounds like 55K of cost plus whatever you pay for the house. Doesn’t seem like an opportunity to me if you can sell for $75K when you’re done. Unless you get it for almost nothing.
What you are over-looking is there is too much damage for the value of the house.
Your estimates are probaby too low and when you get it all finished, you won’t be able to sell for enough to pay for the work.
If the place is a tear down, it is not worth the value of the lot because you still have to pay for the removal. So it is worth the value of the lot minus the costs of clearing the lot.
If you are going to place a modular, what would it cost you to go and buy an lot that was clean and ready?
I can do $55k rehab on a $300k house. But not on a 75K house. You make a mistake or two when you calculate costs and you’ve got a loser real quick.
The numbers are fine the house is not. What you need to do is find those same numbers on a house that only needs paint and carpet. Remember the 3 Ds (Death, Disease, Divorce). They create more real estate values than anything else.