How to determine scope of remodel
Hey BP,
Iv got a house i close on tommorow! Its a 3 bed 2 bath 1200 Sf on Half Acre in washington state. I Paid $135k for it but it needs quite a bit of work. Im debating if i should do a full remodel, or just keep it simple and make it FHA/USDA loanable. Here is my scenario...
1. Purchase $135,000
Rehab-$40,000
ARV-$250,000
Net After Closing costs(excise tax, title insurance, escrow fees and 2.5% to a realtor)--- $63,000
Time line would be 3 months to get the remodel done and hopfully sell in march. $250,000 would be absolute dollar in this neighborhood, but since there is no houses for sale that are fixed up, i think it would sell quick.
2. My other option would be...
Purchase $135,000
Rehab $17,000
ARV-$210k
Net After closing cost-----$47k
This renovation would be about a month, and do just simple thing to get it financable like roof, new texture/paint, new floors, trim and doors, dump fees and make sure all electrical and pumbing is in good shape. Basically reuse all the bathrooms and just clean them up and leave them looking dated but try and lean toward a first time home buyer.
Is it worth it to spend the extra $23k to do a full remodel with new kitchen, bathrooms ect? Its $14000 i would be leaving on the table...... but for 2-3 months less work and quicker turn around im kinda leaning toward the basic remodel