I am an aspiring wholesaler getting in the habit of reviewing properties to get myself into the habit of finding deals. I am in Las Vegas however the property is in Detroit,MI and needs ALOT of work. Has been vacant for over 10 years and I calculated rehab costs @ $30 per sq foot bringing total rehab costs to approx $33,420. I will be reaching out to a real estate agent for comps as I had no luck finding comparable properties that were sold within half a mile within the last year so i can determine the ARV but I am not getting my hopes up as the home is not in the best area either. I am a newbie so I am not sure if I am focused on the wrong things, so I am reaching out for any input with this property. While the house is 1114 sqft, the owner advised that they own the lot space next to the house, which is 4356 sqft, the lot space is really what peaked my interest for more potential but I am not sure how to incorporate extra lot space such as this when looking for a deal.
@Christian Gabriel Best things to do is to reach out to buyers around that area so that you can get their numbers of rehab and what the property is worth. Not sure on how you came up with you own calculation of how much it would take to rehab but throw it out the window. If you throw out the rehab number you could be too high therefor killing your profit.
Hope that helps,
@Louis Davis, thanks for the input! I saw the "rule of thumb" on a previous post on the forums here, also have seen videos/webinars to estimate costs per sqft based on whether its a light, or a full rehab etc. Due to the home being vacant for so long and the condition I assumed the house would need a full rehab. I'll be doing a full walk through soon. Does the expanded lot play a factor at all in how I should be calculating ARV? Or am I still just going by the sqft of the home?