What do I do?

Question

Hey guys, I am hoping to be a first time investor here within the next couple weeks I have found a property in my hometown That is a Home that was built in 1936 and it used to be a duplex but now it is a single-family home but I believe if I purchased it, I would reconvert it into a duplex but anyways it is a 2100 square-foot property That has three bedrooms and two bathrooms right by the college in my town The seller says the only issue is that the wiring needs to be brought up to code and she is only asking 125,000 which to me and everyone I know seems to be an insane deal It also has new HVAC and a new roof just needing to see the inside but just wondered what I should do first in this situation to figure out if it is worth it or not just really panicking. Hoping no one else jumps on it before I can. any tips would be appreciated. Thank you.

Nicholas L. · Answer

@Blake Bailey

but if it's on Facebook, then lots of people have seen it.

and how do you know it's worth 260K?  do you have 5+ solid comps supporting that number?

Nicholas L. · Answer

@Blake Bailey

i don't know your market, but if it's listed on the MLS and no one else has snapped it up, then something is wrong with it.  proceed with caution.  what the seller 'says' is irrelevant.

Bruce Woodruff · Answer

Seeing it on FB only is one possible red flag. Like @Nicholas L. said, have you done your Comps? Did you do them correctly? Tell us what they are....

Next, you need to have the home inspected. Preferably by a General Contractor, but at least by a Home Inpsector...better if by both. How is the foundation? What type of material is the main sewer line going out to the street? How much are you thinking for a complete re-wire and new panel? $35,000?

I have rehabbed 1930's houses and you can easily suck up $100k just getting them worth having.

Caleb Brown · Answer

Wiring alone would be 10-15K+, I don't see 30K being feasible on a rehab. I would verify comps and the rehab. Walking it will give you an idea. Also check with how feasible it is to convert back to a duplex. You need to check zoning and what is required/allowed.

Youssef Riad · Answer

Hey Blake, sounds like you’ve got a promising deal on your hands—nice find! First, try to schedule a showing ASAP so you can get a real sense of the property’s condition. While you're doing that, make sure to run the numbers based on what each unit could rent for if converted back to a duplex, and compare that to your estimated mortgage, taxes, insurance, and repair costs. Definitely have an electrician or inspector check out the wiring and look for any other major issues since it’s an older home. Also, call your local zoning or building office to confirm you’re allowed to convert it back to a duplex legally—that’s crucial. Lastly, if you haven’t already, get preapproved so you’re ready to move quickly if it checks out. If you have any questions, please reach out

Blake Bailey · Answer

@Nicholas L. What's making me wanna go for it is that it's a for sale by owner on Facebook if I could put probably $30k in it should be worth $260ish

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