Check out my first deal and show me why I'm wrong or should move forward
Looking at a place and active comps put ARV about $135K-140K. Sold Comps put it at about $125-135K, but those weren't really updated. Place is a 3/1.5 built in the early 1900's. has updated funace, hot water heater, 100amp panel (looks like a small bit of knob and tube was left in), new carpet downstair.
Roof needs to be looked at since their was a leak (seller said it was fixed but I don't think I trust his maintnace guys), some small issues with brickwork I will be getting a estimate on later in the week. figure about $1500 for roof work and flashing fix and another $1500 for the brick work (mostly some re pointing a small area and a couple little things)
Now the place needs:
New kitchen(small)- tile floor (have the 18'x18' travertine that IO got for a steal), cabinets, countertop, appliances, lights ($6K)
New half bath-tile floor, vanity, toilet, lights ($1500)
Back stairs re done ($1K~1500)
Open stairs to attic and turn in to hatchway and use floor space for closets ($1K~1500)
Sub floor repair upstairs (stiffen a bit and fix 1 hole) ($750)
Carpet Upstairs (700 sqft) ($1K)
Upstairs Bathroom- Tile floor, Tile tub srround, build in tub since it is a corner tub now, toilet, sink, ect ($3K)
Paint and some drywall/plaster repair ($4K)
Fix 3'x8' second floor deck off Master BR-railing and some clean up ($500)
Fence backyard and some landscaping ($3K)
Misc $2K
call it about $27K in rehab to make it nice and well in the top of the comps.
I could also do less but was looking at making it shine and moving it quick.
I figure I have to get into it at low 60's, Owner owns free and clear. Will hold the note and owner finance. I have not talked exact numbers with him yet (but is open to somewhere around that) since I don't have a solid idea on exit value with regards to how much of a rehab would be needed.
other strategy is it would rent for about $1K/ month now and for about 1200-1400 with a small investment in rehab.
This will be my first rehab where I am not doing all or most of the work and also in the city. Do my costs seem about right for you guys on rehab cost or am I just going off the free labor (well my labor ) that I had on other work. I am trying to figure out wilmington De a bit more but still not 100% on ARV and rent figures.
Thanks
Ben