SIGNIFICANT value add/equity opportunity in Orange for new owner
I came across a SIGNIFICANT value add/equity opportunity in Orange. House is located just north of Chapman University with three beds and two baths. House hasn't been updated in quite some time and has a value of $630k once freshened up with new finishes. Current offers are in the low $500's which means walking in with $100K in equity potentially. If you or anyone know is looking in this area please have them reach out. I toured the home over the weekend and have my photos and thoughts ready.
What is the square footage of the house? What's the estimated repair/improvement cost? If using a hard money loan to purchase and rehab, the max loan amount is only $441,000 based on your $630,000 so this wouldn't make much sense as a flip. What are rents in the area? Will it cash flow if purchased with conventional financing? If so, how much? What's the estimated cash-on-cash return? Information please.
I’m not going to add anything numbers-wise, but I live ten minutes from there. As a local, this area around Chapman is coveted. My wife and I go on dates there just to walk those pretty neighborhoods. If someone can make the numbers work, there should be little trouble selling the property.
It is said that Chapman University buys up a lot of the surrounding houses, further limiting supply for everyone else. I have no idea the validity of this rumor, but there it is.
If you aren't interested in providing the information for investors/lenders to analyze, and you and your wife like the neighborhood, you might consider knocking on doors, dropping postcards, or visiting local coffee shops to see if there's interest in partnership. Also, if you call the school, they will might you their expansion plans. They have interest in building strong relationships with their community. Just a few thoughts. Good Luck.
This house got picked up by a wholesaler. Would have been a great opportunity for someone to move in and add some equity.