i am about to flip a property threw an agent the arv is 165k and im getting the house for 30k(good deal right)but the reason i am getting for cheap is because there was fire damage to the roof more than likely needs new roof, agent told me she had a buyer back out last minute, SO MY QUESTION IS DO REHABBERS REALLY CARE IF THERES FIRE DAMAGE IF THEY ARE GETTING LOTS AND LOTS OF EQUITY WITH THE HOUSE? ps its a single family home, needs about 20k repairs, need help soon!!!
I personally would take it, equity is too great to pass up.
I’m going to guess that $20k repair estimate is way low with what sounds like a lot of fire damage. Fire damage usually means water damage too from when the put out the fire. You’ll have smoke damage too.
thanks a lot fot the replys. but one thing i learned from rehabbers is that what looks like 20-25k in rehab really is like 10k(correct me if im wrong).but i just wanna really know if a buyer would normally back down when they see the roof…remember i am leaving lots and LOTS of equity for them. …thanks again guys!!!
Agreed. Not to mention that it most likely needs more than roofing…it needs roof joists, sheething, insulation plus roofing.
And wrong…when I see $20k worth of rehab it’s because I see $20K worth of rehab. I know my materials costs backwards and forwards. If anything the estimates tend to fall short of the actual costs, especially if you’re using a contractor to do the work.
thanks to everyone who replied ,and one last thing when i said 20-25k worth of repairs being 10k , its because when i wholesale and tell the buyer thats what the repairs are , whey would tell me its not really that high. THANKS ONCE AGAIN EVERYBODY!!
If I were you I would have your contractor come out and give you a bid to do the work. That way you are dealing with hard, worse case scenario numbers when making your decision.
eman,
IF your numbers are correct, this is a great deal.
Serious, successful investors will not be put off by the fire damage. However, the fire damage will mean that it is difficult to get insurance and a conventional loan for the property in its current condition. That will limit the number of buyers. If you have some serious investors who are cash buyers, you should do fine.
If your numbers are accurate, you might want to do this rehab yourself. That’s a huge profit to turn down for a little wholesale fee.
Mike
thanks alot to everyone you guys been a really good help THANKS!!!
Our materials cost for a mid-range kitchen is about $5,000. And that’s keeping mind that we have a friend that is a stone and tile wholesaler, so we get screaming deals. A mid-range bathroom material costs are about $3500. So, you’re at $8500.00 to start. I sincerely doubt that you can get the roof replaced for $1500.00. Not to mention to water and smoke damage.
Have a couple of contractors come out and estimate the work, and then average those costs. Otherwise, you’re just talking out your butt and experienced rehabbers will know you’re talking out your butt.