What Should I do with this property?

6 Replies

Hello,

I am currently putting in an offer on a duplex. Offer is $239,000 ARV is $400,000 it needs cosmetic repairs in both units so I am estimating $35,000-40,000 in rehab costs. I am thinking rehab can be completed in 4-6 weeks. I have enough to purchase the property but not enough for the rehab. So this is my dilemma any advise is appreciated.

Should I wholesale the property, try and figure out a way to rehab it myself or attempt to find someone to go into the property with me?

Are there any investors in here who would be willing to partner with me. I am fairly new to investing however I have 6 years as a realtor and 3 years as a loan officer. I have been studying real estate investing for 12 years but only started doing it 1.5 years ago. I have done 3 wholesale deals and 1 flip so far with partners that are more seasoned in the industry then myself. I am looking to branch out and broaden my horizons.

Any advice would be greatly appreciated.

@Tina Encarnacion If the duplex is really worth 400k it should be easy to find a lender to lend you the 56k plus fees that are needed to buy and rehab this property. You buy it for 239k need 40k for work = 279k. there are many private /portfolio /hard money lenders that would lend you 224k so that you need 56k plus fees to complete the purchase and repairs.

If you don't know any lenders that do this type of stuff send me a email. I know plenty of them.

Originally posted by @Tina Encarnacion :

Hello,

I am currently putting in an offer on a duplex. Offer is $239,000 ARV is $400,000 it needs cosmetic repairs in both units so I am estimating $35,000-40,000 in rehab costs. I am thinking rehab can be completed in 4-6 weeks. I have enough to purchase the property but not enough for the rehab. So this is my dilemma any advise is appreciated.

Should I wholesale the property, try and figure out a way to rehab it myself or attempt to find someone to go into the property with me?

Are there any investors in here who would be willing to partner with me. I am fairly new to investing however I have 6 years as a realtor and 3 years as a loan officer. I have been studying real estate investing for 12 years but only started doing it 1.5 years ago. I have done 3 wholesale deals and 1 flip so far with partners that are more seasoned in the industry then myself. I am looking to branch out and broaden my horizons.

Any advice would be greatly appreciated.

 From your experience, you should know a good deal when you see it. This seems like a good deal and you have estimates for costs. I would find a loan, investor, or hard money lender first. You don't want to purchase the property and be stuck with not enough financing. You need liquid capital to cover the rehab and then some. 

There will be unforeseen circumstances when repairing and rehabbing (maybe their is mold or termite problems behind a covered wall). 

Originally posted by @Tina Encarnacion :
... am currently putting in an offer on a duplex. Offer is $239,000 ARV is $400,000 it needs cosmetic repairs in both units so I am estimating $35,000-40,000 in rehab costs. I am thinking rehab can be completed in 4-6 weeks....

You typically want to base project duration on a contractors estimate that uses the exact nature of repairs?