Hello all,
Just wanted to get some feed-back on this deal I got in front of me.
Asking price: $28,000
Rehab Cost: $36,100
Seller buyout: $7,500
Total: $71,600
Comps are $103,00. There are around 4 other houses on the same block that got rehabbed and sold for $103,00 each. I have pictures of what the house looks like and I aslo have pictures of the house next door and the 2 houses directly across the street that got rehabbed and I must say they look NICE. So I just wanted some quick feedback on this. I’m getting ready to go to my lender on this in about 1 hr. Thanks for any replies.
Ken
You don’t have any holding cost included in your figures (mortage, taxes, insurance) plus you need some buffer in the rehab cost (at least $5k maybe 8k)). Also you have selling commission.
So it would like
$28k puchase
$36k rehab
$5.5k rehab contingency
$7.5k seller buyout
$4k holding cost
$9k sales commsision and selling cost (title insr, escrow, etc)
total $90k; should net $13k.
seems OK as even if things go badly you should not get upside down, but how confident are you in the rehab cost? Are you doing it yourself or haveing contarctor do it. Also what you think you rehab and hold time will be; double it and acct for those extra cost.
so you’re going to spend 60k to make 13k?
thats not a good investment in my opinion. i’d rather put in 13k
to make 60k, but then again, i’m not in the rehab business.
to me that just sounds like another job! no thanks, i already
got one of those and it dont work 