Does anyone have some spreadsheet for estimating …?
I came across a 1966 ranch which hasnt been maintained in 30 yrs…
Its 1200 sq ft and will need
Roof Replacement
Siding
Gutters
10 Windows and 1 Bay window
Hardwoods refinished in living room.
Complete interior paint and ceilings
Completely new kitchen 20 x 15
Completely new bathroom 10 x 6
Wall paper removal and replacement in all three BR
Landscape and front walkway
Driveway added or crushed stone
add driveway drainage / grading
Septic never touched or pumped in 25 yrs
and also could finish walkout basement to add 1200 sq ft living space
replace garage door
replace two exterior doors and storm doors
misc rotten wood under overhang…
This is a preliminary list of what needs to be done…
I figure the house could sell for 165K ARV
and the lady is going thru probate and will own the house free and clear…
What to offer?
I left out Real Estate Commissions, Taxes, Insurance, holding costs, and loan interest…
Can anyone help me to decide what to offer…?
Also how can I fund the deal… i can only do some sort of stated loan and dont have tax returns for last two yrs…?
I need hard money lender i suppose, anyone out there that can do it w/out the above…?
Refferals appreciated…
sounds like it needs everything; just looking at the list, you easily spend a $75k (or more). At that ARV, its almost a teardown as I would not ofer more than say $25K for the place.
I just finished rehabbing a similar house. (ranch, 1200 sq ft. ARV 165k) but it didn’t need as much work. I’m no contractor but from your list I’d say at least around $50k worth of work.
I’d say offer her 30k, show her all the repairs you’d have to do and hope she accepts. I wouldn’t pay over 50 grand for the building.
Check out the web-based calculators at homefixers.com . From what you wrote, I’d estimate that you should use at least $25/sf as your input for rehab costs - I’d likely be more conservative and use $27 or even $29.
If you’d like, I can do the estimates for you. PM me and I’ll do it.
David
Mohegan,
For grins I went ahead and used the estimator I referred to above to come up w/ an estimate of your max offer and estimated rehab, buy/sell, holding and money costs…I had to assume a few inputs, of course…
Max offer = $76,673
Total rehab cost = $36,000
Buying and holding costs = $2,300
Money cost = $11,251
Selling/realtor costs = $12,375
Profit = $26,401
Below are my operating assumptions:
Est sales price of $165,000 = $137.50/sf
Rehab costs = $30/sf (but this could be even higher!)
Downpayment = $10,000
Loan = $102,673 @13% with 5 points
Realtor comm = 6%
This calculator isn’t exact of course, even w/ known inputs - but it should give you a ballpark idea, subject to further refinement by you and your situation. So, it ain’t gospel!!
Thanks alot everyone for your contributions to this topic…
Special Thanks to David for running the numbers…
That gives me a good idea of offering price…
One thing came to mind, the property was appraised for 113,900 four yrs ago befor the market popped…
I can only hope to get it for less… much less…
I have a prliminary offer of 120K from another rehabber…
so i just have to figure out how to tie this one up … It is a property going thru probate… howe can i lock this up with a contract so my offer cant be shopped around and lock this one up when its in probate…
What kinda contract would i use…?
Option, or P&S…
Dont forget they will own free and clear and I could make a split funded offer… any ideas on that… or how to lock up and structure deal…?
Well 120K was what another rehabber said he’d pay for it…
I need to figure out how to lock in and tie up this property… Because its in probate currently im having trouble to figure out how to do this…
If i make an offer to purchase contingent on the completed probate process ( which could be months )
She would have too much time to shop @ for a better offer…
