How to value a property that needs significant repairs

Question

Hello,

I'm currently looking at an investment in 3 properties that all are in need of some fixes.  One of the properties is in need of foundational repairs.  I've gotten one estimate for 15k, and one for 10k.  The house also needs to be painted or have new siding put on, as well as having the windows replaced.  I was wondering how people figure what to offer knowing that there are significant costs that will be going into the property up front.  Thanks in advance for the feedback!

James DeRoest · Answer

Run the numbers exactly as you would for a house that needs few repairs.

Thomas Guertin · Answer

It sounds to me that you are new into the rehabbing business.  If that's the case, I've heard and read in different places to stay away from foundation issues so being new, I would take that advice.

If you get a few rehabs under your belt and then want to get into foundation issues then I would try it then.  For everything else, I've heard people getting a competent general contractor in to give you an estimate on the rehab cost.  If you guess and are wrong, you could lose money on the deal.

Tom

Ryan B. · Answer

For foundation issues call Slab Jackers, good guy good prices.  Window World will run you about $250 a window installed.  Siding install in Springfield area is going to run you about $100/ sq labor.