First RE Deal Ever Fix n Flip
So my wife and I are starting our first deal ever, by starting, I mean the paperwork isn't signed yet but should start today.
The hardmoney lender we're using has a sorta fail safe in place to keep us from doing something stupid - probably a good thing for noob, right!?
We were looking at a 5/3 foreclosure here in Mobile, AL been there a couple of times scoping it out. Yesterday we met a contractor over there, after discussing what we wanted to accomplish, he stated that he wished he knew us a month ago. He met a lady last month that came into town after her mother's death and they (the kids) would be happy to sell the house for $40K and just walk away. Sure that there was no way she still had the house, he texted her, and to all of our surprise, they still had it...drove by, with our realtor, who was showing us the foreclosure. The house is in relatively great shape. It is a 3/1 in a nice neighborhood, 1025 sq/ft, great curb appeal, privacy fenced in back yard, and a roof leak. Incidentally it was raining when we went there, but the roof was obviously very old, but made the leak very evident. The ceiling wasn't awful so hasn't been leaking for long. Carpets are in need of cleaning, probably don't need replaced...but removed in one room and discovered hardwood in that room. That's really it. Estimate on roof is $9200 for architectural shingles, fortified, and patching the damaged area.
Obvious deep clean the whole house, paint the inside, new appliances in the smallish kitchen, floors, & roof for all in repairs, cleaning, & appliances of $14,725
Comps came back and should be able list and get $109K after rehab.
After purchase, rehab, closing & rehab costs, as well as hard money lender fees, etc. should be able to net $28K
AND out ZERO MONEY out of pocket except for maybe earnest money.
The only thing right now is the property is in probate, but the probate courts are STILL OPEN here, so am told, it shouldn't take very long to get that done.
I'm curious...I wrote all that to say...I'm looking for partners in my area (Mobile, Alabama) and or mentors - I've been looking at real estate for a long time and finally made the decision to JUMP in...also if there are questions or concerns about this flip...let's chat.