Hi all, need some help to decide whether this is a good deal or not. my RE agent told me there is a foreclosed property asking 39.9K. I did a bit research on this house and just cannot wrapped my around it: how the world it was sold three months ago for 130K, 2 beds, 1.75 bath, ended now asking for 39.9k, no bed, 1 bath????? so I drove to the property, there explained everything. you can see the sky through the roof, half of house was gone, the windows were boarded up..... it was in a tiny neighborhood, I mean there are only 7 houses in the neigh hood, off a main street. The average price here is 151 per square foot. its a class C+ neighbor. If I bought the properties, I will need to fix the roof, the entire house, need new heating system, new AC, pretty much new of everything. I may purchase the properties upfront by cash, say 25K, however I need a loan to fix it up, prob a hard money lender which is the only option I can think of. the house foundation is 750 sqft big that also limit the ability to expend, unless I build two floors. the ARV could be 100K to 130K. My husband/business partner isn't in favor of this project as all. I used the bigger pocket tool to analyzed it, the hard money lender and the sale price were the keys. if I can find low interest rehab loan, or I can sell the house for 150K, I could make profit.
I would like to hear ya'll two cents on this one. I guess I am actually asking should I buy it or not? is there anything else I should think about besides the number? thanks!
750sq ft total? half the house was gone ???( addition tore off, or are you exaggerating the roof) based on your project details, id guess 45k+ in rehab .... building a second story would be out of the picture for me. If I were you, id high ball everything , sounds like major damage to this house maybe shoot for 60k rehab, high points on the hard money..... even if you buy cash at 30k +60k + hard money fees + closing costs ... you might be able to squeeze a 10 percent return out ..... if you have good contacts id say maybe It could work ... if you have only done this a couple times , maybe pass on this for something with a quicker turnaround time
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