I found 2 properties that were listed on a local Real Estate investment club that I think sound like good deals:
3 bedroom on huge lot, off street parking, ARV $110-$120K, approximately $20K in repairs, Priced to Sell Quickly, asking $49,900.
3 Bedroom 1 Bath. On a nice, well cared for Street, with a Great View. It has a 2003 furnace with newer windows, the walls and ceilings are in very good condition. The bathroom needs nothing but a cleaning. This home would make a great rental or could easily be retailed. Needs: Exterior Scrape and Paint, or Vinyl Siding, Concrete work on the stairs & a Moderate kitchen update, carpet could be cleaned or replaced, It has newer windows but 5 need just the glass replaced. Twin house next door is listed for $75,000. After Repair Value $55,000-$65,000 Repairs $8,000-$11,000 Price $19,900
Are these good properties to get me started in Real Estate Investing. My goals are to flip some propeties to get some money saved up so that I am less relient on loans for my projects and eventually moving up to apartment complexes.
I don’t know, you need to do your homework. You need to find out what houses just like these in the same neighborhood have been selling for over the last year (this is called comparable sales or comps). That will tell you if the $110-120k is real or not. You need to then find your contractor and take him to the properties and get a first pass estimate to see if the $20k fix up is even close or not. Do the same with the other property.
If you are going to flip the property, you need to know what the house will sell for. That is where the comps come in. You then find out what the make ready costs, holding and transaction costs are and add them up. This will leave you with how much the flip will make you. I don’t know your area so can’t tell you if the house is build on a tar pit or next to a land fill. I will tell you that the numbers you gave sound really good, I would listen to Nike and just do it. And I would do it as if I was going to buy it.
What kind of work do the properties need? I think 20k is a little high! I can totally redo a property for 15k roof to furnace! I honestly think the key to rehab is how good can I make this property look CHEAP! think about it like this if you like red paint and brown carpet and white counters your buyer might like white paint and tan carpet and wood cabinets so do not get to detailed they might rip it all out anyway! Also I have left the old carpet in the house and old flooring and allowed a carpet and paint allownce people like to pick out there own stuff!
Depends on the neighborhood and comps. Always check out neighboring properties. Go to a couple open houses to see what they are offering for that money. Research it out. Remember sellers like to think their properties are worth a fortune so they might have cooked up the number to make them look better to potential buyers.