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Real Estate Deal Analysis & Advice

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Ashley Zhang
Pro Member
  • Investor
  • colorado
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195
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Is this fixer&upper a good deal?

Ashley Zhang
Pro Member
  • Investor
  • colorado
Posted Jul 23 2018, 09:17

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!  

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