Hi BP community! New investor here looking to househack- have opportunity to short sale a hoarder house (duplex) in a beautiful beach location. It's currently under contract but subject to short term sale approval at $112k with my agent estimating rehab at least 40k. I have private lender set-up to cover cost of purchase + rehab.
Being my first fix/flip, I am having a hard time running number as the house is so bad - there are multiple rooms were are unable to physically see, let alone get into. Whats a good way to estimate rehab cost on a hoarder house that I don't have access to see entire house? General experience on a hoarder house flip?
Market analysis is great for area, my husband and I plan to fix and flip, live in one side and either rent or Airbnb the other unit once rehabbed. Thanks everyone!
Assume the worst and hope to be pleasantly surprised.
YOu will need to estimate the cost of removal of all the junk, removal of all sheetrock in the house, there will probably be some plumbing, if pier and beam then some foundation also, then the cost to put in everything. That should include: sheetrock, flooring, kitchen cabinets, light fixtures, pretty much building a new house with out the framing and maybe the electrical, well and maybe only some of the plumbing.
1) Make sure you're getting a great deal that has the margins for large unexpected bills. Run all numbers very conservatively for worst case scenario. Also, not sure if the servicers 3rd party BPO agent or appraiser got inside, but typically they need access to the house and all rooms. If they got in, hopefully you'll be able to as well!