Ok, so here’s the deal I came across (accident)…
Type: Foreclosure (Tax deed currently in Upset Bid phase, last day Monday, November 5th)
Comps: $82K-$102K (recent sales within last 6 months)
Tax Asses: Mid $70’s (2006)
Bath: 2 (one is in master)
Heat: forced air
Repairs incl: Landscaping (4 trees removed - dead and on ground, 1 standing to be taken down, misc. bushes removed, curb appeal added - flowers, etc.) , new carpets in two bedrooms, hardwood laminate flooring in master, new linoleum in kitchen, new laminate counterop in kitchen (I make - $400, buy for $1200) or solid surface top (I make - $1000, buy $3.5K), considering new cabinets (I make - 3.5K, buy for $6K), paint interior, new toilet in one bath, reglaze of tub in same bath, new linoleum floor, new vanity and top, two louver doors replaced for washer/dryer area, new blinds, paint porch, new mailbox, possible new heat unit (will confirm after inspected, but as of now looks operational), gutters cleaned and shields installed, one screen to window replaced (look like someone sliced it to look in - no, not me), trim, wall, ceiling painted. Adding an alarm system (loss prevention during flip and added benefit when selling - $400 for ADT monitored system).
Had a title search company run a report and the only thing found was original mortgage (still nervous about this).
We are buying the house cash, and are budgeting an additional $17K for repairs with us doing alot of the manual labor, and $22K for added labor. Unrealistic? Keep in mind that being that this is our first flip, a majority of the work will be done by us, so we can get a true blueprint of the inner workings of unanticipated items, timelines, etc. for subsequant flips. I realize that each flip is different, but this should help to provide a baseline. Carrying costs each month (to cover repairs) are $396.
What types of insurance should we carry? I know title insurance (although I am still not schooled in this, but know we need it, as I am not confident that a title search can reveal all problems)… does this cover us in case the title search missed something? What about house insurance, or what type of insurance needed?
Exit strategy is rehab and sell - After renovations, we are still not sure whether we should use a realtor or not. If not, what other strategies for selling would you recommend for beginners? In the planning stage, we plan on putting it on the market for $78K-$91K, based upon existing comps, tax assesed value and work to be performed. This will obviously change depending on market conditions at the time (we are looking at a February listing), and what a real estate appraisel will determine.
Does this look like a good deal?
Thanks for your anticipated input… positive or negative…
P.S. - we were planning on spending the winter months researching more, but this deal came out of nowhere, so we moved our plans up due to bidding time constraints and are looking for sage advice from the experts.