Howdy all. I’ve got a house under contract that I’d like to sell to a rehabber. At some point, I’d like to get into that, but I’m wholesaling for now (so much to learn there, yet.) I would like to put together a sweet file on the property that has much/all of the relevant info a rehabber would need to know. I am not comfortable estimating repair costs yet, though, because if I were, I would rehab myself. What I do know is house is under contract for $415K in appreciating neighborhood w/ good comps averaging $530 and up.
House is sound, but cosmetically outdated (was rental for 15 years)
Things I am considering including in this “property info package” is 1. comps list, 2. good photos 3. appraisal 4. inspection
Of course, the appraisal & inspection would have to be paid for by me, but I think it would help get a deal done. What do you all think? As rehabbers, what would you like to see? Or do you just take the P&S and do your own analysis? Thanks very much.
Howdy Fairlead:
I would not bother with the appraisal and maybe not even the inspections. The rehabbers lender will want an appraisal done but usually have an approved list they want to do the work if not an in-house appraiser. The inspection could not hurt but may not help. When I buy I do not get inspections unless the lender requires one as in my commercial building and it is usually structural and environmental engineers needed.
Even the rehab expenses will vary with different rehabbers. Still it would not hurt to get some bids from contractors for some of the obvious repairs needed. This will help you become more familiar with repair estimates.
Along with the comps the average days on market would be helpful as well as % of asking price realized and overall market trends. Can you verify the continued appreciation in the neighborhood for instance.
Thanks tedjr. Good point about the appraisal. I’d probably be wasting my money since they can vary so much and the lender will want their own anyway.
Although I can’t say for sure about future value, I can say that this neighborhood has not been flat for over 10 years, and no signs of stopping- double digits now, and has been for years. And as gas prices go up, so does this neighborhood’s value. It’s the in-city neighborhood for the pretty people here in Seattle. Plus, we just voted down our only shot at any real mass transit (monorail), but that’s another story…
Hi well 1st off you paid to much, 415k, now you would like to flip to a rehabber, well u will need to add 10k otherwise why bother, , so now you are at 425k, now add, 10k closing cost in/out, 435k, add 25k construction, (every house needs 25k or more ) so now 460k add 25k cost of money, 485k add 20k for a broker to sell the home, 505k, add 10 misl, taxes, insurance, ect. 515k, so were’s the profit? Now, so you no a little about me. I have been involved in over 50 rehabs/flips, and an expert on pre- construction.
Bob Prisco