I am a new investor and looking at a property that currently has asbestos, mold, and roofing repairs that are needed. The home is located in an area that could sale for 400K-435K if renovated properly. The current asking price is 200K. Would it be too much work to have all of the repairs including upgrades to make the property more attractive to buyers? What is the average cost to remove asbestos? My thought is that having these issues could potentially lower the cost of the home. Does anyone have any insight on this topic? Is this a waste of time or could this be a potential deal? Please help!
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
13y
You don't provide nearly enough information to answer your questions...
Without knowing a LOT more, there's no way for anyone here to be able to tell you how much those repairs would cost or how much the upgrades would cost. It might be a great deal or it may be a horrible deal. There's just no way to know based on the information you've provided.
That said, here's my recommendation:
1. Find a reputable GC who can give you a ballpark estimate of how much it would cost to do the repairs and upgrades you'd need to do to get your resale value;
2. Find a good real estate agent who can verify what the resale value would be should you do those upgrades;
3. Do a quick analysis to determine if it would be a good deal based on the rehab and resale numbers (we can help with that once you have the information);
4. If it appears that it could be a good deal, put it under contract with a due diligence contingency, and then due more thorough due diligence.