Investor · Ellinwood, KS · Member since 2017 · 15 posts · 4 votes
I was contacted about an elderly homeowner who wants to sell near KUMED.
4100 blk of Bell
4/1
1300/1500 sqft (zillow/county difference)
Desires: Fast and easy. (leave all the junk and no repairs)
Zillow: 167,000
Asking: 132,000 hopefully but happy for anything over mortgage. I want to be fair.
Owes: 107,000.
I am exploring both renting and flipping.
A real estate agent residing in the Volker Neighborhood suggested the market prices keep rising even for houses in disrepair and thought this 4/1 could bring in the mid 250's with a remodel including an added bath, updated kitchen, second bathroom, and landscaping.
J Scott's flipping and estimating books have been helpful but I want to walk the property with people experienced at estimating Rehab costs and ARV.
Rental Property Investor · Overland Park, KS · Member since 2016 · 205 posts · 85 votes
9y
@Amber Rugan it sounds like a really good property. Here is my two cents...
FLIP:
I think to reach the $250k number you would have to touch every surface and go with high-end finishes. Without any major improvements (foundation, roof, mechanicals) you are looking at $35,000 to $45,000 (depending on your skill of finding deals/labor) in updates to get it on par with comps that are in that area pulling around $250k. These older homes require a very specific look to match a buyer. It has to have the old character (expensive to repair/recreate) but also needs to have some of the modern wants/needs (open kitchen/living, etc).
RENTAL:
You are 2 blocks from KU, so finding consistent tenants would be very easy. You could give it a quick update, do a BRRRR approach and maybe even get some money back on the appraisal. Maybe $25,000 to modestly update the kitchen, baths, paint and flooring. I have a bank that I would recommend for the refinancing if this is your approach.
WHOLESALE:
This is always an option. I know for one, I'd be interested.
Rental Property Investor · Overland Park, KS · Member since 2016 · 205 posts · 85 votes
9y
I would do the bulk of your homework on the big expenses. Cosmetic stuff is pretty standard.
My estimates did include finding space for, plumbing, and finishing a 2nd bath. In my opinion, that's necessary to hit your $250 number.
Foundation repairs can soar to $20k+ very quickly. Roofs are more or less fixed between $6k and $10k, depending on a lot of variables. Electrical can be expensive as well. Make sure it doesn't need to be rewired. That's $6k+. Driveways are expensive. A tear out and new pour is $9k to $12k. Plumbing is a few thousand if you need major updates. Windows are $200+ per window.
Those are just ballpark numbers I've encountered. The cost could be a few thousand more or less depending on quality of workmanship and using licensed and insured workers.