Would you take on a project like this
Would you take on a project like this? What would you estimate the repairs would be just based on the description and pictures? Is the 230k arv worth it?
#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
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#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
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Multiply your ARV my .7
If your purchase and rehab estimate is more than that i would think twice on the deal
#2 General Landlording & Rental Properties Contributor
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#2 General Landlording & Rental Properties Contributor
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- Fort Washington, MD
By looking at this pics it looks like a potential tear down but there is no way to know with just this. To be in this business you have to be able to do basic assessments. Presenting this here with no other information is useless. There are dozens of dynamics that come into play that are critical before you ask others about it. From seasoned investors based on this it appears to be a no go, but this is something you will need to be able to go in and understand why. If you have a 100k spread, that means in order to not be under water for your ARV, you need to be able to include all the acquisition costs, holding costs, renovations costs, your time and dozens of other things to make everything come in on time and within budget. If not, it even costs more. You have to understand potential appreciation in the future. Is it on a well or septic? Is the foundation good? Does it even have ducts or modern HVAC? Do you know the cost of an entire gut to include all all new framing, insulation, wiring and plumbing? If it will be a house hack, rental, flip, STR or whatever, you have to have mapped out strategies and exit strategies built around it. Appears you may have lead and mold issues. There are tons of other things you need to understand. If you dont, just posting a link asking is it good will not benefit you. I hope this helps and good luck! Its a crazy business and I'm just trying to help you understand how complicated it can get.
This looks like a tear down to me. I’d rather have an empty lot.
There are enough cosmetic rehabs (sometimes including roof, windows, siding) out there that I don’t get involved with huge rehabs like this that could tie up me and my cash for far too long.
Quote from @Larry Turowski:Thank you Larry! Which market are you finding those deals? Having a hard time finding those types of deals with numbers that work in the Houston market
This looks like a tear down to me. I’d rather have an empty lot.
There are enough cosmetic rehabs (sometimes including roof, windows, siding) out there that I don’t get involved with huge rehabs like this that could tie up me and my cash for far too long.
Quote from @Ben M.:
Would you take on a project like this? What would you estimate the repairs would be just based on the description and pictures? Is the 230k arv worth it?
To be honest, it does not look like the bones are even there. I like to make sure I at least have something to work with. I probably would not take this one on.
Quote from @Ben M.:
Quote from @Larry Turowski:Thank you Larry! Which market are you finding those deals? Having a hard time finding those types of deals with numbers that work in the Houston market
This looks like a tear down to me. I’d rather have an empty lot.
There are enough cosmetic rehabs (sometimes including roof, windows, siding) out there that I don’t get involved with huge rehabs like this that could tie up me and my cash for far too long.
Rochester NY. And Occasionally the south shore in MA. Always off market deals.