Deal Analysis-SFH Monson,MA
Hello fellow investors, I wanted to post about a deal I'm analyzing. My intent is to think out loud ,if you will, and hopefully get some advice on my process.
To start I will provide the basic info, then my walk-through and research, followed by my personal analysis. Please feel free to jump in at any time and weigh in, I appreciate the feedback in advance!
asking 109,900
Single Family built in the early 1900's,
1742 Sq feet farmhouse
1.75 acres on a beautiful groomed (flat) lot.
Listed as 3 bed (4th possible)
1 bath (small, remodel)
Large 2 car garage (no reno needed)
car port
Walk In Basement-Concrete
Across from Cemetery
On a Main Rd.
My assessment:
small eat-in kitchen 7x13(full remodel)
L.R. 9x12 (Carpet and paint)
Hallway 12'(Carpet, remove paneling, paint)
Office 6x9 (refinish Hardwood, paint, remove paneling)
Bedroom 1 9x9(carpet, paint)
--The above area of the house is clearly an addition and overall is in good shape. It is also clear that the owner of the house was disabled (wheelchair) and it appears they didn't enter or utilize the rest of the house.
Bed 4/Bonus Room 9x9 (sheetrock, paint, carpet)
Kitchen 2 7x12 (strip, remodel to a mudroom/other area)
Stairs (refinish wood/paint, or carpet)
Bedroom 3 and 4 12x12 (wallpaper removed, paint, carpet)
Upstairs Hall (Paint, sheetrock)
Bonus Room 2 (Cosmetics)
Bonus Room 3 and 4 (Light Cosmetics)
The kitchen is the first room, this is in need of purgo or hardwood flooring and a full overhaul. The living room is off the kitchen and is in good condition. There is a hallway between the kitchen and living room. In the hallway there are two rooms and a bathroom. The first room is a small office with hardwood floors. The second is a bedroom in very good condition. The bathroom is smaller and needs updating.
There is a second bedroom/sitting area with doors at two sides of the room, and walk in closet. This seems to be the first point where the house was sealed off. I know this based on the peeling paint on the ceilings. As you walk through this room it leads to a second kitchen. This kitchen is seriously outdated (original) and would need to be brought down to studs. The flooring is salvageable (I thought about opening it up and creating a large open air porch area, as the screened in porch is outside this room).
Walking upstairs, it occurs to me that there may be lead paint, it seems very old but not in terrible shape. The two rooms at the top of the stairs are identical. Large closets, very old vinyl flooring and walls are in fairly good shape, electrical is newer, but needs updating to ground faults, etc. Walk down hall between the two rooms and there is another set of stairs. At the base of the stairs is a long (14-16') room. You can see the pitch of the roof, like a loft, on both sides of the room. There is a step down to get in and you have to stoop down to get in (kids playroom/storage maybe?). I continue up the stairs and at the top are two identical loft (roof pitch on both sides) style rooms, and I notice all the heat is up on this level (very hot and stuffy). In the basement there was water in small puddles on the floor, but overall it was fairly clean. Newer water heater and electrical panel. I saw water damage in one of the two upstairs bedrooms and a small patch of mold.
I'm not a contractor but my personal assessment of the property is this may be a deal with the right offer. I am thinking I cannot offer more than 60k. My layman's assessment tells me the repairs, especially if there are issues with electrical, will be in the 80-100k+ area. The ARV of the property, according to my RE Agent (team member) is somewhere in the 220-260 range. It's assessed at 185,900 and taxes are $2811.
Seasoned investors, speculators, and new investors alike I would like to hear your thoughts on the property.