I have an opportunity in Modesto, Ca. My dad is in a reverse mortgage on a 2 br, 1 bath home in Modesto ca. 1,025 sq feet. Built in 1956. I think the repairs needed (before having an inspection) are complete gut and remodel of bedroom, partial remodel of kitchen, fireplace inspection and repair and 2 years out on a new roof. I am a real estate agent in California, so some of the sale costs would be remediated. I think I could sell for 200,000 to 220,000. I'm not sure what rental values are for Modesto right now. So what do you think I would need to have as a purchase price in order to make this work as either a fix and hold or a flip? I', thinking PITI of $850-$950, insurance of $50, water $50, taxes $2,250, property management $100-150. His reverse mortgage is for $270,000 and he has a personal loan he took out for grant countertops in the kitchen for $6700.
He has also replaced the ductwork and I believe upgraded the AC. Do you think the bank would sell this property at a low enough price to make this work as either a flip or a buy and hold for the area? I was going over the numbers with my husband last night but I am nervous since this area is out of my comfort zone, but also within the area I want to consider.
Hi Naomi without k owing your personal finiaces really hard to say wether to hold or flip sell. Sounds like a lot of major repairs have been done over the years which is a huge positive.
I'm in the Modesto area and could give you some feedback on the area if you are interested.
You can message me on here if you'd like,