Newbie wholesaler to investor/rehabber question

7 Replies

I'm a newbie to wholesaling and i am scouting to potential run down properties that have been vacant for years. However I don't know if the two properties are worth pursuing because of the age and damage to the house. Below are pics of both houses 

House 1's structure was built in the 1860's. The main problem is you cannot see it due to the growth around it. Note: this is a historic town where the comps are selling for the high 300's

House 2

This is an older pic i pulled from the net, after doing a drive by the house is almost covered. 

Can someone advise on whether if these could be saved.

I've contacted my states tax assessor's office office and got the owners information. But I don't know if they are worth pursuing because of the conditions. 

What are neighboring properties selling for?  What could you rent them for if you did a rehab on them?  How is the neighborhood?

@Bob E.  two properties within a block sold for the 300,000s. A friend of mine lives in the neighborhood the average rental fees are 2200 to 2600. . This neighborhood is very low crime. 

@Ronnie Gilmer  Wow.  From the pics I thought those were Ghetto.  I would find the owner and get permission to get inside with a contractor and get a bid.  You don't want to drive by it everyday while somebody else rehabs it and wonder how much of a killing they are going to make.

That said be careful if they are historical, some cities will force you to renovate, even if it is not economical.  If you could do a teardown, that might be an option too.

@Bob E.  Thanks for the advice. I'm actually not a rehabber yet. I'm getting into wholesaling to build my capitol. I was questioning to see if they would be good to peruse if they can be rehabbed based on the age. I'm going to contact that and see if i can view them and put together something to send to my investors list. Thank you for your advice. 

I agree, run the external numbers and try to gain access to give your investors a more accurate report

If ARV is in the $300k's the houses are salvageable, it just comes down to getting them at the right price. Or, if bought for the right price and they need too much work, could be scraped and rebuilt (hysterical society/designation aside). Your first hurdle is finding the owners and getting them interested in selling, concentrate on that. After that you can worry about price and repairs. If they're dead set against selling or you're unable to locate them all else is moot.

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