Well, after 3-4 months of reading, talking and looking I have made my first offer on a fixer-upper.
Here are the numbers:
Listing Price $129,900
Rehab costs $8,000
Holding costs $8,000
Sales Commision $7500
My take $12,500
Offer Price $114,000
This is a pre-foreclosure where the bank is doing the negotiating. They say they have accepted an offer but still will accept mine as well. Eventhough I will probably not get this deal I am happy to finally get an offer out and go through the process.
I am working with a mortgage broker(actually the branch manager) that we have used for years on our personal residences. He does some investing as well and knows exactly what I need. We can get a 30 year 80% LTV at .25% above the normal rate.
As for repairs, we need some trim work(previous owner put in new laminate flooring but did not finish), new siding (vinyl), reconfigure the kitchen with some new cabinets(base and wall) and counter tops, and some carpet and of course a fresh coat of paint.
I was in the construction trades for 11 years and everything that needs to be done I can do with a little help on labor, my son will demand $12/hr ;D