???We think as our first project we found a 2 flat for $135,000. We think if we take a loan to $200,00 take$35,000 to rehab the building and then sell for $280,000 to $300,000. We checked out the homes around in the area, they go for around the same price. We also think it will only take 3 to 4 months we have also been inside and seen the building we think we can do it.
But I have to admit we are a little afraid to get into this thinking we may fail and lose money, any information you could give us to point us in the right direction would be great.
Thanks
Here is some info :
Hud Foreclosure Sale! Sold “as Is”. Insured Status:ui. Hud Electronic Auction. Call Listing Broker For Comp Info. Use Hud Key .disclosures Including Lbp, Property Condition Report,bidding & Procedures See Showing Instructions.structural & Plumbing Repairs Needed,replace Hvac System.buyer Required To Certify Zoning/use W/city
$135,000
5 Bedrooms, 2 Bathrooms
Multi-Unit
But I have to admit we are a little afraid to get into this thinking we may fail and lose money
Masterkey, the truth is you MAY fail and lose money in REI, especially if you don’t take the time to plan out your purchase and sell strategy and/or don’t take the time to learn the basics of the business.
A HUD duplex listed for $135K. IF the FMV of the property should be between $280-300K, why is it listed for only $135K? If it is because of damage/repair work needed, is there on $35K worth of repair work needed? If so, how did you determine the repair figure?
How do you plan on getting a $200K loan on a purchase price of $135K? How long will it take to rehab? How long will it take to resell? How long did the comp properties take to resale? Did they have tenants in them or not? Do you have/or will have tenants in place before you sell? How do you plan to sell?
The point I’m trying to make is REI is not as easy as ‘Hey, let’s go buy a property, fix it up a little and then sell it for twice what we got in it.’
You need a detailed plan to get from buying to fixing to selling, and getting it all done AND making a profit.
If you have more details, someone may be able to give you more specific help.
Raj