Is a house that is beyond repair a rehab? I mean this place has no roof or floor and missing a wall along with the common gross and nasty of this kinda place. I feel it is wrong and was looking for somebody to back me or correct me.
On a good note!!!
I did advise him to buy today, asap, yesterday. The owner told me that if we took this pile off his hands today we could have it including all cont of the buildings for $100K. ;D
Can’t really help you without more information. Can’t say it is or isn’t a rehab without knowing if new construction plays in your area. IE a tear down? What would be ARV of restoring the current home be?
Anything can be made a deal or rehabbed, if you put enough into it, just is it profitable in the end. I normally advise people who do not have a ton of experience not to get into rehabbing a place where the rehab costs are more than the acquisition costs.
Technically speaking, if it is beyond repair, then it is beyond rehabbing, thus not a rehab ;D.
Yes it is a tear down and the property will be devided into 3 or 5 acre lots and mini ranches put on them. I’m trying to do the math for all of it but I need some numbers from the well driller and county. We are guessing $900k+. But there is a chance the he might sit on some as rentals and sell when the market is better.
The sad part is that this place is 2 miles from my home and it is the second one in the area that I missed in 4 months.
My thought right away was - TEARDOWN. LOL
Check your development costs carefully.
Good luck.
These are commonly refered to “scrapers”…
Keith
Scrapers? I’ve never heard of that. Or is that Scrappers? That I’d understand. Any way you put it - that place sounds like a teardown. Actually, I’d enjoy finding a teardown or two, especially if it was on a few acres.
No, it’s a scraper as in having to be scraped off the property with a bulldozer.
Keith
Thanks … I’ll remember that term. ;D
I like that term. There is a scraper that one of my real estate agents is trying to get me to buy. It is a 4 bedroom 2 ½ bath 2 car garage with 2600 sqft in a neighborhood that goes for $140k AFV and they want $75k. This thing is melting (it must have poltergeist) The sewer has a problem The previous tenants took up the downstairs toilets poured cement down the sewer line and used the toilet upstairs and fixed it so that the water ran all over the upstairs and down. It was not discovered for days if not weeks. When I go in there the fleas attack you and the studs are even soft. I would need to get it for the price of the lot and even eat the cost to scrape the lot. But we are about $40k apart on the sales price.
I never heard that term either but I like it. It is a scraper but there is a rehab there in some black berries but can’t tell what it is yet. The only issues now are waiting for it to close and water. I got the zoning and permit info and equipment rented for next week after closing. I’m thinking about buying one of these as a test on a off the wall investment theory I came up with. I might become a new breed of guru and you know theres alway’s room for a new guru :
I just dug out the rehab and am gonna buy it from the investor. It’s real nice for a rehab. I see a win-win here. I told him I would buy it for $100 with 5 acres and work out some terms. This will be my new home in a month and a gift to my wife ;D