Details from my first off market purchase
Hello BP!
I'm going to use this thread to detail a project house that I just purchased. I have learned so much from the community here hopefully sharing this might help someone else.
We closed around three weeks ago and I will update the thread accordingly.
History: I got a call from a 'tired landlord' who sold me some houses last year with an agent. They had a fire in a rental. I inspected the house. It had minimal structural damage and the rest of the bones looked good.
We went under contract that day and closed a week later. I am not sure if I will flip it or rent it. My thoughts are to rehab with the idea of selling in 10 years.
Purchase 12,000
Rehab/Holding Estimate 35,000. ARV 85,000 Rent 1200 (keep in mind taxes are over $300/month)
I estimate it will be rented in February.
The house is very chopped up with 4 small bedrooms and a bunch of illegal rooms/bath down in the basement. It's around 1000 sq ft downstairs plus the 2 upstairs dormer bedrooms. I need to check with the city to see what is legal.