I have our first property under contract. After 12 days trying to move it, nothing significant has transpired. I am wondering if it is the marketing I lack, or the area. I feel it is a great deal but I have only had 2 inquiries. I listed it on BP, Linkedin, and craigslist. with a link to pictures, and details about the property. I do see that there is a lot of competition on craigslist but not one compares to this property. I have a small buyers list and sent it out to all of them. I show it for sale at a certain figure, should I have just stated " buy contract for $5,000"? It is showing at a low of $51,000 and high at $58,000. I have been asking $28,000. I am running out of time and really want this to happen. If anyone has any input, I would really appreciate it.
Check the MLS for recent cash transactions in the area. There's a good possibility that these are investors. Contact these people and see if they are interested in picking up another property in the area.
Maybe you can also put bandit signs up in the area advertising the deal?
Take it to your local REIA
Partner with another wholesaler
These are just a few suggestions.
@Terri Lewis Your property looks priced OK for a buy and hold investor, looking to rent the property out. However, for a flip, I don't think there is enough margin in the property nor a lot of traditional buyers in that area.
Your property ad looks solid, especially compared to some of them out there. You could always expand though, provide comps and detail of the comps, more info and pricing on what repairs may be required and also more photos.
I despise most wholesalers as they are mostly crap, uncommitted, shuffling **** deals around. However, there are a couple of real wholesalers that I do stay in touch with. Below is one of their recent distributions...note the amount of detail provided. There were over 30 photos included with this distribution. Good luck!
Here is a rent ready unit at 2410 E. Sanson. It is a three bed, one bath home currently heated by gas fireplace down and gas heat up. ARV is 90, yours 47,500. Needs general clean up but rentometer puts rent at $800 month based on (34) 3 bedroom rentals within half of a mile. As is rental this is a 56% of market deal. If your strategy is to fix and flip. This unit needs Carpet $2264, Vinyl $909, Electrical to hook up existing baseboard units and add two more in two rooms $900, Sheetrock repair $300, Paint inside $1000 (outside done last year), Kitchen cabinets need to be sanded and refinished $500. Roof has a few years left but would have to eventually deal with 18 squares of re-roof. Repairs total $5873 for a 69% of market deal. This allows for 10% cost of sale. This unit is unoccupied and I can get you in on a moments notice as I live just 2 miles away. Call Steve Stephens at 509-868-4043 anytime seven days a week. As always, I have my Comps professionally done by Tim Ray of the "Specialist Group". Here is what he wrote.
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Here are my thoughts, notes, and numbers on 2410 E Sanson. This is a 1908 built 1.5 story home that is tax assessed at 872 sq ft main, 200 up , and a small quarter basement. The home has 1 bedroom on the main floor and 2 bedrooms upstairs. However, it appears that the stairs enter directly into one of those "bedrooms". Also, the upstairs is heated by one gas space heater. FHA regulations state that EACH bedroom must have its own heat source capable of heating that room to at least 65 degrees on a cold day. Therefore, an electric baseboard or "Cadet" style heater, plus associated wiring, would likely have to be run to at least 1 room upstairs to qualify the home for FHA financing. The main floor appears to be heated by a single zero clearance gas fireplace insert. Your notes mention that there are 2 electric baseboards on the main floor that are installed but not connected to electricity. Those would likely need to be connected as well. The home does have a somewhat updated kitchen, with what appear to be birch ply cabinets, and the bathroom looks ok. Per your notes, the exterior of the home was painted last year. If this is correct, then the photos on Google earth are very current. That means the home has a fairly nice yard and landscape, with lots of flowers/bulbs planted. Google Earth shows a home with fairly good curb appeal. It also shows that the home might need a new roof, since the roofing material visible in those aerials shows a 30 to 40 year old roof with the "jigsaw puzzle" looking old shingles. I didn't notice any obvious curling or anything in those photos, but they also only clearly show a portion of the roof. The roof should be inspected by a qualified contractor. This property has a very small basement for storage and what appears to be an old furnace down there. The total above grade sq ft of this home is estimated at 1150 sq ft, with 2+ bedrooms and 1 bath. The neighborhood here, while east of Crestline and approaching what most people would consider to be Hillyard, is actually fairly decent. There are lots of older, fairly well kept homes on this street. The lawns look average or better, indicating that there might not be a high prevalence of rental properties in this block.
You mentioned that this property is nearly "rental ready", and I would agree with that statement. The purpose of my analysis is to determine the likely ARV for an investor. As always, the ARV will be totally determined by such factors as the quality and extent of a remodel and by how many legal bedrooms this home has after a remodel. As I stated, from what I can determine from the pictures, this is currently a 2 bedroom home according to standard appraisal guidelines. The county considers it a 3 bedroom home. I have never been inside the home and am relying on supplied current photos and tax records.
I have attached 5 recent sales for homes with varying degrees of updates. All of these properties are withing about 10 blocks of the subject except for the property on North Lee Street, which is about 20 blocks away (nearly due south) but in a comparable location. I concentrated on homes located in Grid 2, which is from Wellesley to Francis, Market to Crestline.
2818 E Diamond is in a slightly inferior location. This is a 3 bedroom 1 bath house with a 1 car detached garage. It is slightly larger, with 936 assessed sq ft main, about 400 up, and a cellar basement. It had updated paint and carpet, a newer kitchen, nice covered patio, and forced air gas heat. This a pretty clean home. It was listed at originally at $89,000, was reduced to $79,000 and sold for $77,500 with a market time of 282 days.
2129 E Decatur is in a comparable location. This was a 4br 1ba two story with slightly more sq ft, with 900 main and about 500 up plus a half basement. It has gas heat, a fairly new roof, newer paint, a large kitchen with updated cabinets, and no garage. This home looks like it was remodeled around 2010 or so, and while in great shape, it appears to be due for some updated carpeting. Everything else looks good here. The home was listed at $80,000 and sold for $80,000 with a market time of 25 days.
Next is 4928 N Martin. This is another 4 bedroom 1 bath two story with an assessed 792 sq ft main and about 500 up, so it has slightly more above grade sq ft. The home has vinyl siding, vinyl windows, a newer roof, fairly recent paint, a newer hi eff forced air gas furnace, older painted kitchen cabinets, and a good floor plan. This was a pretty clean home with some nice upgrades throughout, especially mechanical and the siding/windows/roof etc. The home was listed at $79,000 and sold FHA for $82,700 with the seller paying 4% in buyer costs.
2819 E Queen was a very clean 3 bedroom 2 full bath two story in a slightly inferior location. This home had 986 assd sq ft main and 384 up, so it was a bit larger, and no garage. Vinyl siding, vinyl windows, a newer forced air gas furnace, all updated paint, carpet, and vinyl, and a totally updated oak kitchen with nice appliances. This home was very nice and appears to have a more functional floor plan than the subject. It was listed at $89,950 and sold for $87,000 with a market time of 137 days. Again, this home had TWO full bathrooms and some very nice upgrades, including a nearly new kitchen.
Last is 3409 N Lee, which is further south of the subject. This was a 3 bedroom 2 full bath investor flip that had an extensive remodel including an all new kitchen with granite countertops, all new paint and flooring, updated bathrooms, gas heat AND central air, an oversized one car garage, and a lot more. It was also considerably larger, with 1200 sq ft main and about 300 up, with a cellar basement. This home was on the market a long time. It finally sold when the price was dropped under $100,000. It sold for $98,000.
Based upon these and other recent sales, in my professional opinion, the ARV value of the subject is going to be perhaps $90,000. To achieve the highest value, the issues of the upstairs bedroom, heat sources, possibly the roof, and a new quality kitchen would have to be added, as well as the usual paint, carpet, and floor coverings. . On the lower end, you would still have to deal with the heat source, the upstairs bedroom situation, new carpet and paint, vinyl where needed, and possibly that roof. Again, I do not know what the roof looks like today, but recent photos obtained from Google Maps show a pretty old roof, although it doesn't look in bad shape. The steep pitch of a roof will generally give a longer roof life. This home already appears to be in decent shape overall and is probably ready to go as a rental. And again, this is actually a fairly nice block of homes.
There you go! If you have any questions, feel free to drop me a line or give me a call.
Thank You very much especially for the depth of your examples. We are one of those that really don't have the funding to invest in the property, hince wholsale it. We re hoping to gain some funds from wholesaling to help us move into our disired market "fix and flip". Also have a property we've been working on funding for, but don't have the "skin in the game" cash, and it's less than the mostly required $50,000. I will go back and work at the specifics on this, and see if I can make things come together. Thanks so much.
@Elio L. Great, a Realtor we've been working with " both directions" wanted to talk to me about it. Just didn't put much into the possible importach of the discussion because she does not like wholesaling, but what the heck. She might have some investors to talk to.
We seem to keep missing our local REIA meetings. Need to move up the importance of that too. We seem to always be out of town doing emergency work that night. Might have to make the emergency wait a day, or get someone else to handle the job. A little delegation on my part is needed. I've been trying to take time and read. Just need to keep putting things into effect. Thank You for the input of knowledge.
@Terri Lewis For those fix & flips you want to go after, make sure you check into crowdfunding. They are looking for deals to fund - not sure of your experience but I would open some verbiage with the groups with your deals.
Start with https://www.ifunding.co/
Good Morning Terri...
I would also post to Facebook and Twitter, as additional marketing sites...
Also sending letters to Home Owners in the area of your listing, asking them if they have any family or friends that may be interested in this home, may help...
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I have been trying to read a little about the crowdfunding. I will check that out a little deeper and make some contacts there to see what we might be able to come up with. Not sure of how any of that works. I guess the best solution is to start asking questions about how it works and what the criteria is for the funding. We have done several complete rehab jobs for other flippers. I've also been close to several contractors for over 30 years. Some I have help them on some of their projects. More of a hands on person. As we grow we want to change that but for now it seems that it is the most economical means to help offset the expense of a flip. once again thanks for all the help. We have a strong desire to grow and I am glad I found this site to help with these questions, and advise to get us where we want to be in a few years.
Thanks, Ron. I will get my partner to do the facebook he did on the another property that we are wanting to flip. We had a lot of people wanted to rent it. At this time that was not what we were looking for on that one. I am proud that we have at least come this far. Now it's just getting to the next step.
@Terri Lewis there are several valuable threads on crowdfunding here on Bigger Pockets! Loads of info available. However if you want to have a conversation, I am happy to get on a call with you to answer any questions you have about the process, the portals and the properties that are being crowdfunded.
Thanks Sam J.
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