OfflineI may be paying too much ($17,500) and I need to bounce this deal off somebody ....a fixer upper 3 bedroom house county assessor says worth $25 to 35,000. Needs a lil work because 1 fire in a bedroom. I found a good carpenter. I need to put in a furnace and I wanna buy and hold. Seller agreed to a 3 year land contract with a baloon. $500 down then $100 per month ...deal or no deal HELP !
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There are a couple of things you need to determine.
First thing you need to know is your FMV/ARV. Never go off the assessor’s value/amount when you are determining the value of a property. Those numbers are rarely accurate, and will only end up causing you problems in the long run. Get yourself some comparables and run a true FMV/ARV. That is, and will always be the most important thing in determining the potential viability of a deal.
The next thing is to get a bid on rehab. With all the repair that needs to be done on this property, you really need to know what you are looking at for rehab costs.
Once you have run you FMV/ARV and have a couple of rehab estimates, and then you can move forward in determining deal or no deal. It’s better to take a little extra time to figure your number accurately, then to make a costly error.
The fire could be more extensive in the end. Getting the smell out and all that goes with that. Research what needs to rid a house of fire damage as well.
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Thanks for speaking on what I call the pressure points. It is really helpful to hear others, with greater experience, summarize what we need to focus on. The details of the process may look overwhelming at times, but you have cut to the chase. That saves time and energy and helps me to gain the respect of buyers and investors alike.
Thank you