Good deal or Bad deal

Bird Dogs, Wholesaling
1

I’m looking at a deal thru a realtor. Propert Listed at 229,000. great residential location. First floor 2 bedrooms L/D/K/1 ba. 2nd floor smaller with 2 bdrs/L/K/1 ba. An also unfinished basement. with a 2 car garage.

House and garage needs to be repainted. and needs landscaping. On first floor both bedrooms needs repainting and floors redone. living and dining needs the same. bathroom needs new entire revamp. Kitchen needs new floors, appliances(stove and sink). Second floor just needs to be repainted. Garage needs new roof.

Question: How do u estimate the cost of repairs per square footage?

Ive estimated repairs as follows:
Landscape: 1500.000
Exterior paint: 5000.00 (Both house and garage)
New Roof(Garage):5500.00
New Kitchen: 4500.00
Interiror paint: 3000.00
Sheet rock repairs: 3000.00
All new windows: 5000.00
Driveway:2500.00
Floors Carpeted: 2500.00
Total estimate : 30000.00 to 35000.00 Repairs
Plumbing is good. New furnaces. Electricity is good

2 family is rented. Lease ends June 1, 2009
1st fl. 960.00 / 2nd fl. 790.00= 1750 total rents as of today
With renovation estimated rents in area 1500.00 1st fl. 1200.00 2nd fl

Now my question is: If the ARV is 186,3000(comps) *.70=130,410-35000(repairs)=95410-10000(assign fee)=85410 (MAO)

IS THIS A REALISTIC OFFER TO MAKE ON THIS DEAL?

*I’M A NEWBIE. TRYING TO GET FIRST DEAL. :help

2

The repair estimates seem high for the rent prices, thus the type of property. For example:

$1,500 landscaping? what are you landscaping?
$5,000 for windows? the property needs 50 new windows?
$8,000 for painting? what is the total sqft of the property? Do you really need to repaint all of it?
$2,500 for carpeting would give you about 2,000sqft of carpet, how much needs to be carpeted?
$4,500 new kitchen, I thought the kitchen only needed flooring? appliances are cheap
$3,000 sheetrocks? is that to finish the basement? does it need to be finished? what do you get in return by finishing it?
$2,500 driveway? what is going on with the driveway?

The offer is always realistic if the numbers are correct. I just doubt the property needs $35,000 in repairs specially that the units are occupied. You’re asking $10k assignment fee. Is it such a great catch for an investor to earn a $10k assignment fee? can they get hard money at 70% of ARV in general, and in this market specifically?

Can you get a contractor to walk through it with you and give you estimates? not a yellow book type of contractor though.

3

Thanks for replying. Thats exactly what i was thinking.