I am thinking of buying a 1875 home for 45000 per Zillow ARV is 150000 and repair by contractor is 65000, is it worth it
You need confirmation of the actual ARV. Zillow is not a fully accurate ARV provider.
Also, have you ever done anything like this before?
@Yolanda Thompson welcome to BP! Always good to see another CT investor! You need to give much more detail both about the project itself, and how you would approach it. For the house - @Jeremy Pace is correct in that Zillow can be WAY OFF! Look at recent sales on Realtor.com or more appropriately, find a good RE agent who works with investors and have them pull comps for you. That's number 1.
Number 2 is the renovation budget. Here in CT, we have beautiful houses from pre-1900, but I have some SERIOUS reservations about renovating a pre-1900 house for anything less than $100k, and more like $150k. What your contractor is probably not including is a) rewiring the entire electrical (more than likely necessary), b) replumbing the majority of the home, and c) new septic.
Number 3 is about how YOU will do the deal. Are you using a hard money loan? Are you buying in all cash? Are you looking to flip or rent? All of these things go into analyzing the deal - many deals are great for one investor but horrible for another.
I don't buy up that far (so I'm not competition - promise); send me the address in PM and I can try to help you out!
The one thing to consider it the amount of investment typically increases wuite a bit if you have not done this before (and even if you have done it before.) the contractor is giving an estimate before he has opened any walls, etc. Has he included all new plumbing? HAve you received a clear termite report? How is the roof? electrical? landscaping? driveway? are there large trees to be removed, trimmed? Are you replacing windows? How is the furnace and AC? How your priced these out?
If this is your first time, I would start with a simple Paint and carpet job and you will see what else falls into the repair category. It adds up quick!
Not trying to be negative at all, just want you to make sure you have looked at all repairs prior. Would this deal be worth it to you if the repairs were closer to 90k?
Get an accurate value estimate from a realtor.
Welcome to the Best Real Estate Site on the Net.
It is always nice to see another Ct., resident in the forums.
Click on the "learn tab" at the top of the page, and you could be spending many hours on the Information that is available.
Welcome to BP!
I am a licensed realtor in CT with access to the MLS. If you want me to run accurate comps for you just PM me and let me know
THANKS YOU ALL FOR THE INFORMATION YOU GAVE. I HAVE A LOT TO THINK ON. I WAS THINKING OF DOING BANK LOAN WITH EXIT BEING FLIP OR RENTAL DEPENDING ON BUYING MARKET
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