first deal for the new guy

We put a bid in for our first investment home!!! Zillow is listing the home at $206,000 and our agent suggests that we can sell it for $250.000 The home needs about $15,000 in rehab and we put in an offer at $140,000. The home is in pretty good condition with a lake view but the major problem areas are a crack in the foundation and new roof is needed. Any suggestions will be greatly appreciated.

I don’t see a cracked foundation and new roof only being $15k. Maybe I’m way off base there since I live in California and labor is $$$$.

cracked foundation and new roof are going to use up that $15,000.

“pretty good” condition can mean a lot of things. Do your walk thru and get general estimates of what you’ll need to put in before you buy. Carpet, tile and a new kitchen can add up fast. foundation repair can crack water pipes requiring expensive under-slab repairs (always get a leak test after a foundation repair).

get firm comps IN WRITING. don’t trust “well, he said we can sell it for X”. What are you going to do if it’s only worth $220? $206?

how are you financing the repairs?

have an exit strategy. have plan B.

you’d probably be ok at $140 but I doubt you get it for that. you might not be ok at $206. somewhere in the middle will work, but you’ve got to know more about your costs up front.

Also make sure that is all it needs. Sometimes those issues lead to other problems. Have it inspected :slight_smile:

cracked foundation huh?, i looked at a house today with a cracked foundation in 4 locations, and thats just something that you dont want a deal especially if its your first deal, …does pretty good condition means nice paint and floors???, u need to look further down at the structure first , if its ok, then move to the rest, but structure is the most important thing…i recomend you to do more research… or move on to the next one :wink: