Cuddebackville, NY · Member since 2017 · 2 posts · 0 votes
I'm a first time investor looking to get started in REI. At first I was looking to buy an MFR and house hack it, however while browsing locally I found a foreclosure that could possibly be a great deal.
It's a foreclosure for about 25k; 4 beds and 2.5 baths 2500+sqft. This is a complete gut reno, however, arv should be around 170-200k as that is what similiar homes around the area is selling for.
Now if I follow the 70% rule I have about 94-115k for costs as well as reno right?
Is this a good deal/should I go for it?
Any advice would be much appreciated.
Also looking to connect with anyone in the Hudson Valley area in NY.
Are you planning on doing any of the work yourself? Labor and materials for construction cost more in NY than many other parts of the country and you have to think about whether this property can be properly renovated in its entirety for only $100,000. I see you live way out past Middletown though so maybe things are somewhat cheaper there?
Maybe you could do enough to make it habitable and then move in, saving on housing costs while doing a "live-in flip".
Good luck and welcome to the site! Spend a lot of time on BP, listen to the podcasts and do lots of research. I haven't read it but J Scott's book on Flipping Houses, published by BP, seems to be very well-regarded.
Real Estate Agent · Rockland County NY & Northern NJ · Member since 2016 · 83 posts · 45 votes
9y
Hi @Bojian Li! Congrats on potentially finding your first investment. I am personally a huge advocate for the BRRR strategy because it can be extremely cheap if using a low money down loan. But flipping is great for generating cash quickly.
At such a low price, you may want to get an engineer in there to see if it's structurally sound. I know that if something were that cheap down here in Rockland County, it must be a tear down! Are you working with an investor-friendly agent? They should be able to help you run comps so you know exactly what your ARV is looking like. If you don't have a good agent, let me know and I can put you in touch with someone who knows your area.
Cuddebackville, NY · Member since 2017 · 2 posts · 0 votes
9y
@Moshe H.
Maybe a little, but I feel that with a project this big it's probably a better idea to leave most of the stuff to the contractors. I'm down for doing some smaller stuff (things that are harder to mess up) myself.
I think costs are somewhat the same, but I would need to connect with more people and ask around, as right now RE is my side hustle.
I am definitely trying to absorb and retain as much information as I can from this wonderful community!
@Allyssa Compton
Yes I would be open to BRRR this property as well since rent around this area is pretty good. I have only recently joined BP and started looking at the market around the area.
I currently have no "team" to speak of and I feel like I would need to get in contact with a lot more people as I have not really had the opportunity to connect with other people at the moment.
It could quite possible be a tear-down, and no I don't have an agent yet. I would appreciate it very much if you could put me in touch with someone that you know.
Currently I'm not in a rush to invest as I've just found BP about 2 weeks ago, and I've just been educating myself so far and learning the basics. The ideal thing for me I feel would be to BRRR/multi-family, however I haven't found any good deals for multis around here currently.
Thank you both for taking your time out to help me! :)