BiggerPockets

I am considering a property that seems to be a good deal but the house is 1,400sft in a neighborhood of 1,700 to 2,000 sft homes. I intend to rehab it and sell it but I am wondering if even with the upgrades I am planning (roof, hardwoods, appliances, etc.) I will not be able to compensate for the small size.

No, there is nowhere to add additional space...

Do you think the size would be a problem?
Can I compensate for the size with price?

Thanks

Hi, if you're within 80% of the larger home properties, you're close enough. Probably not noticable from the curb. That's close enough to use as a comp and adjust for the sq. ft. in the analysis. The others will probably bring yours up. You're in good shape! Bill

If you have doubts then I would pass, there are too many good deals out there and in today's market one bad decision will put you out of business.

Brian Haskins

I think if it is priced right that buyers will see it as a bargain in a neighborhood of higher priced homes.

Originally posted by Charles Perkins

I think if it is priced right that buyers will see it as a bargain in a neighborhood of higher priced homes.

I agree, I thought about that too. The house is in great shape and needs very few repairs. I believe that at the price I am getting it I should be able to price it right. The key is going to be choosing the repairs/upgrades to it so that I add value to the house but still am able to price it competitively.

One consideration is putting in a new roof even though the current roof is 14 years old. I would think a 14 year roof still has plenty of life on it but this is a major upgrade, specially on a house priced in the $120's.

Other considerations are HVAC, hardwoods, granite counter tops or re-doing the master bath.