I'm negotiating my first deal through a land contract potentially . Its a 7br 2 bath the owner wants 25000 im hoping to turn it into a 2 unit . 2 unit in the area have recently sold for 80,000 or better. I have a walk through scheduled this weekend. I'm just want some advice on how should i approach this and also my potential exit strategies ? the property does look that bad from the pictures every thing looks cosmetic.
Hi Tareak -- If the property is in Grand Rapids it's good to know that the city's current practice has been to deny any requests to convert current SFRs into 2-units. As far as advice, I would try to soak up as much information as possible during your walkthrough regarding what major improvements the property might need. Cosmetics are easy to estimate, spend more time trying to figure out the likelihood of something major being an issue (mechanicals, structure, mold, etc.). If you have good construction knowledge you'll be fine, if not you may want to consider inviting someone along who does. For exit strategy, I would just try to run/estimate the numbers on several options (wholesale, whole-tail, fix and flip, BRRRR) and then choose whichever one gets you closer to your RealEstate/Financial goals. Message me or email me if you'd like some help.
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