Opinions wanted......REO

Any chance you can get a historical home grant from state govt?

Probably not...

Quoted from the state site, "Properties must be listed on the State Register of Historic Places and owned by non-profit organizations or municipalities."

This is not a listed property.

bump...
still looking for input

How long would you need to rehab the property? It really depends on the HML's terms. Also, is this something you want to sell at FMV? Right now the market is good for entry level homes. This doesn't sound like an entry level home. Is there a market for a house priced at the high $300's? If you couldn't sell it and had to hold on to it and rent it, would it cashflow?

rehab?....not long, 3 months maybe...It's actually only 2550 sq ft, I found out but it is so cool I wouldn't mind living in it myself....I'm a sucker for old homes.

If I could pick it up and flip it I would sell it well below market value just to get it out the door, the question is would this be a good HML project?

asking price = $144,500
rehab done right, = $100,000
rehab skipping a few items, = $60,000, maybe less
fair market value after rehab = $345,000
Primo neighborhood.

So there is at least $100,000 spread there.

Why it has been on the market for over 400 days I do not know....maybe some major deficiency that I did not notice....I went through the house quickly because it was "open" so there could be a number of major issues.

I would like an HML type loan to buy it, fix it and either sell it or move into it.
maybe I should just ask a local HML guy?

Hi Bob
I just want to say I am jealous! I love old Colonial (Georgian architecture) homes. I lived in one for many years. It was the saltbox style with a balcony and the big tall columns.
Is yours a brick or wood?

If you rehab it with hard money you have to have someone who is in the market for an oldie or you will be stuck with it and the payment. Maybe someone who would like to have a bed and breakfast or a retirement house.
They also make perfect offices. I just prefer them being left as a home.

If you can crawl up under the house you will probably see that it is sitting on big stones for holding up the underneath. Most of those houses are so close to the ground you can barely squeeze under them. It is interesting to lay up under there and look at the workmanship they did back in those days. If you can gently scrap away the paint layers, layer by layer you will eventually get down to the original color they painted it.
I even found the original wall paper which was beautiful.

One big problem I had with my beautiful old house was one day I was sitting in the living room and started hearing this sudden creaking and the house shaking. The next second this loud thunderous crash and rumbling. One of the chimmneys/fireplaces fell and quickly filled the room up 6 feet deep in bricks...mortar dust was everywhere for hours. My whole house and everything in it was covered 3 inches deep in fireplace dust not to mention the huge mess of bricks that now filled my big room.

Those old fireplaces do crumble after a few hundred years. That is a pretty big expense within itself to repair. I had 4 fireplaces that had to sadly be brought down for safety sakes. I loved those old fireplaces.
I would suggest you getting on top of the roof and seeing if the bricks pull away easily from the chimmney. They probably do.

Post some pictures of the old beautiful house.

There is one picture attached in my first post. It's all wood, center chimney.
I have an email in to the listing agent so I can crawl around a little deeper next week.

I have "issues" with my current life situation which may prevent me from getting this house but I'm hoping that with a huge equity spread it may not be as hard as I imagine....I'm also thinking 203k loan....gotta 'think a little different' on this one.

Bob the property really looks like one of those old homes. The list price is $144K. What are you offering for it. We know what is the FMV after renovations, but how much is it really valued at right now. Also based on what you are offering, and the fact that you are a contractor, it may be worth your while to put in a good bid, fix it for way less than you suggest and flip it for a quick turn around. This would allow you to acquire a larger return on your investment. What about the location? Will the property be an easy resell. Good Luck and God Bless.

Sandra

Thanks Sandra,

It looks old because it is old....
the neighborhood is fantastic! close to everything.
Value as is, just guessing at this point but if a few small issues were addressed like paint and a new kitchen.....it would easily sell for $250k or more...easily.
This of course, is based on one , short look see....It could be a murder / suicide house for all I know with a lake in the basement.

I have thought about the rehab aspect and for sure it needs a roof (currently cedar shingle but that's a big nut so I'll probably do asphalt), a kitchen, some floor repairs.

On the 'list' would be an insulation check and get some blown in if none exists, replacement windows, interior paint throughout, bathroom upgrades. I saw no big structural issues except for one gable wall with a classic belly in it....a pretty big belly at that but it's probably been there 100 years and it's non load bearing so it can wait.

So as I said, $100,000 to do it right, $60,000 would get most of the big obvious issues handled.

I'm still in need of financing advice....got any?

I overlooked the picture...that is the classic saltbox Georgian style. If you could add a upstairs balcony above the front door you could greatly increase the value. Just cut that window above the front door and make it a upstairs door leading out onto the covered balcony. I love that ole house! Thanks for sharing the picture!

Bob, if you intend to flip, maybe end buyer could assist with financing or check Coastal Funding. Dean also has some form of financing in a post on the left entitled, "secure a new loan." You will have to fill out some information on a form, and a representative will call you in 24 to 48 hours. They are very prompt. The only problem is, they could not help me until my property was sold. It will not hurt to try. Also, with a good offer on the property, especially if the owner has paid off the property in full, you might be able to get a good deal. Always remember, minimal work for maximum profits. Good luck.

Sandra

Bob,
Sounds like the type of deal I am looking at. I'm in Southern California but this would be my first deal and I am no contractor. This house scares me a bit because the floors aren't even and there seems to be cracks in every wall. They have also added a second floor but not finished anything up there. The roof has bumps in it and the driveway has tree roots pushing it up. LOL Other than that it's beautiful...or it could be beautiful. Great location etc.

I don't know if I should try for it. I still haven't made that first jump yet and am afraid I need someone to give me a quick kick to get off the fence.

Interesting comment about the chimney. Just met a chimney sweep today at a street fair. He said that with older homes you should request the seller have the chimney inspected, that it was a level two required inspection but that most buyers don't think to ask and they don't offer it just because they are such "good guys". Something to think about for future reference.

Willowme, When I sold my first home, I remembered distinctly that the prospective buyer came on two occasions. The first time by himself and the second with a contractor who informed him that the property was great and he will have to do little repairs. This is an idea to consider. You do not want to open a can of worms here. Play it safe and you will be okay. Some old properties could have great potential and in most cases are better than the newer ones. Good Luck.

Sandra

Crooked floors are one thing but cracked walls are quite another. This indicates foundation/settling issues, combined with a crooked roof......DANGER.....BIG red flag!!

Get it inspected.

Thanks for the input. We walked away from that one and have seen a few more where it looks like they just decided to build their own little town on the property. My partner says "just say no" to houses like that. LOL You really just have no idea what you are getting into. Maybe good for experienced investors. But we decided to stay whith more "normal" properties.

Hello:

I am VERY new to this I have read Dean's book and have been driving around a lot looking for a deal. I think I have found one, but I am not sure of the next step. I looked on line and in the public records found that there was a lis pendens filed at the end of 2008, also a tax lien on the property file in April of 2009 for about 2,500.00. I did find out the owner either did own or does own a convenience store here and another home address in town. It doesn't appear that the property has been foreclosed on yet. Is this a situation where I should try to contact the owner to find out the story, or contact the bank?

Any help would be appreciated. I hope you all are having a wonderful evening.

I would try contacting the owner but first you should research other properties in the area to get a FMV. Try talking with the neighbors to find out where he might be. Great success!
Lubertha