Am I On The Right Track???
I haven't made my first deal yet, just doing my homework. Ill use a home I passed on (I think it was good deal) for an example. It was a 2/1 with full unfinished basement. New AC, Furnace and newer WH. No structural damage just needed to be updated. About 5 blocks from Univ of MO St. Louis (Mainly a commuter college). The neighborhood is low to mid income. It was FSBO for $30,000.00. The home across was listed for $99,000.00 and one 3 housed down was listed for $114,000.00. That is all I had to go on. I used Xactimate (estimating software) and figured I will have about $12,000.00 - $15,000 in repairs. That would make a really nice home. I figured I would have listed it for around $65,000.00 -$70,000.00. That seemed to fit the area. Potential net of $20,000.00 -$25,000.
Did I pass a good deal up? Like I said, it was a great home; I was just worried about the location. What else should I look at when determining a good deal? Determaining cost of repairs is not a problem as im an Insurance Adjuster. I just moved to St. Louis so I dont know the area as well as back home.
Thanks to all!