Offlinewell here's the DEAL: looked @ a property on tuesday and i THINK it has a decent profit to be made, called an AD in the local NEWSPAPER and found out the property was on contract with another INVESTOR, she wants to wholesale the property to me for $215,000 i haven't checked COMP's yet but the way the property sits, the now owners had the property on the market for 5 months @ $249,900 and would NOT sell, however i feel if i put some TLC like cosmetics rehab into the property i should be able to get in the upper 200's ( 270-285 ) it just needs new carpeting through out the whole house (got 70's carpet now) paint through out house, the main bath needs to be remodled and some other little touches. Here's a idea that's been bouncing back and fourth in my head, upstairs where the bedrooms are thiers a main bedroom and then the other bedroom but it's rectangle like almost like sombody was going to make another bedroom out of it, which i may do but if i do that the bedrooms sizes are very small maybe 10x10 i didn't measure yet, and i'm not sure on what it would cost to put up a new wall to divide the rooms and take down one of the closets thats taking up a lot of space. The property is very nice sits on 2 acres, beautiful layout and deck in the back of the house which is in great shape, i believe right now the property lists as: 2br or 3br, 1.5 bath, just over 2,000 sq.ft. 2 car garage, i ran the numbers so far based off of a FMV of $275,000 which is right around what zillow said too (but thats not what i'm basing the number on).
property: $275,000
fix up cost: $20,000 (accurate?)
holding cost: $6,600 (2 months)
closing cost: $8,250
profit @ 11%: $30,250
total offer: $209,900
so what do you guys think, should i proceed @ $209,900? YOUR HERO,SULLY.
YOUR HERO, SULLY
what about
realtor costs
transfer cost on both ends (buy and sell)
are your closing costs for both ends?
D
Don't Wish the Past, Create the Future! - DH
there is no realtor involved, and yes closing costs are for both ends, SULLY.
YOUR HERO, SULLY
I say yes - numbers look really good! Good luck!! Let us know!
www.adeptpropertiesllc.com
my story:
http://www.deangraziosi.com/node/10404
everyones imput,i appreciate any thoughts that anyone has. SULLY.
YOUR HERO, SULLY
Fix up costs look ok... based on what you posted here.
I would double the holding costs if your market is anything like mine.
You are gonna sell it yourself??? You sure??
How sure are you on 275K value? It is human nature to WANT a deal to work. One to "make" it to work is to pad the sales value..
i'll tell you what i think, thats the thing i'm NOT sure about the FMV being $275,000, i mean, mark what do you think is a good estimate on re-carpeting the entire house @ 2,000 sq.ft.? with also painting most of the house i'd say: living room,bedrooms,kit, most of the house? my problem with this deal is, i need an accurate # on rehab(cost), also i feel i should make @ least 10% profit any less, not sure if it's worth the hassle, cause i have to sell myself. SULLY.
YOUR HERO, SULLY
carpet depends on the grade...the cheapest is like $12 a yard. Installation is $3.50 a yard..now prices vary but this is what it is in my area. So thats 15.50 a yard right there. You said you have 2000 sq ft, so thats $3456.50
Paint is usually 300-400 a room.
Don't Wish the Past, Create the Future! - DH
thanks for the suggestion on pricing, by the way is the $12 a yard, is that indoor-outdoor carpet or is it pretty decent carpet? SULLY.
YOUR HERO, SULLY
indoor builder grade plush...sheet you see in apts.
Don't Wish the Past, Create the Future! - DH
so basically junk, i get it, thanks D, SULLY.
YOUR HERO, SULLY
yeah pretty much. But when renting and or fliping (unless it is a higher dollar house 300k and up) thats what I would use.
Don't Wish the Past, Create the Future! - DH
thats the kind that you use D? i mean, does it look good? SULLY.
YOUR HERO, SULLY
I grew up in the flooring business...Builder grade will do the trick. But like I said only use in less expensive homes.
Don't Wish the Past, Create the Future! - DH
you can tell the difference? would someone that dosen't know any better know the difference? SULLY.
YOUR HERO, SULLY
you can see and feel the diff. But if it is an everyday average user then I would say they might not be able to tell...
But if I am tring to attract a high end buyer for a high end house I am not installling builder grade anything!!!
Don't Wish the Past, Create the Future! - DH
appreciate the time you took to explain the difference in carpets. SULLY.
YOUR HERO, SULLY
I think D is right on with what he is saying. I typically spend about 2K on flooring and the same on painting. But my houses are a bit smaller.