OfflineHello I need help in determining if I should check out this home.
$150k 3 beds, 2 baths, 1500 sq ft
Built in the 70's
Single Family House
It has been on the market for over 70 days.
It needs replacement windows, some have broken window panes.
New carpet
New appliances needs new cabinets
Needs siding has a painted exterior that is an annoying yellow color.
Drive is overgrown with grass and has not been sealed lately.
I have not been in to see it to know what else is wrong with it inside.
It has one owner and no mortgage on the property since purchase by the original owner.
Most properties are going for $128k to $135k in the same subdivision.
It also has a big 1980's TV satilite dish in the back yard which I think is also making it hard to sell.
If I want to buy it do I talk to the seller or to the realtor?
I don't have the credit to finance any no money down ideas?
Thanks
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Michael Ricks
Michael Ricks
You need to determine what the selling and sold comps are for the last 90 days.
The selling (currently listed) comps let you know what your competition is. How long have they been on the market and are there alot for sale in the area. Sold comps tells you what properties are actually selling for and trends, can go back 6 months for trends (up or down trends)
You stated most comps are selling for $135,000 so we will use that number.
ARV is $135,000
The repairs you listed are lets say $25,000 No way to know with out an estimate from a licensed contractor but we will use $25,000
You did not state your exit strategy, wholesale, assign, fix/flip ypur self, buy and hold??
We will assume you are wholesaling it
So $135,000
Repairs $25,000
65% of ARV $87750
minus $25,000 repairs = $62750 offer
Sell it to a rehab guy for 70$% of ARV after repairs $69,500.
This is just a rough example.
If the property is listed with a realtor, offers must be made to the realtor.
Hope this helps,
Michael Mangham
MD Home Acquisitions LLC
Knowledge is power, but execution trumps knowledge. Tony Robbins
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