House hacking a rehab..

5 Replies

A hearty hello to the great nebulous mind that is BP.

Currently I live on the south side of Mt. Shasta at 5000', completely off grid, all to my design.

This takes up an incredible amount of time to keep all systems running. It's time to get off of this mountain and get to work.

Work- though I have a pretty extensive background in RE, from management of highrises in S.F. to working for a Master Appraiser in Sacramento, more management and asst positions in Seattle, multi-mill prospectus writing, and I've flipped two homes in Portland to a decent success. All that said, I've been studying to be a home inspector in my fine state of CA- and I've just been picked up by Home Inspectors of America. My LLC is filed, am insured and am moments away from Nachi and CREIA certs as well.

Back to getting off of this mountain, so I can get to work... There is a family in the nearest town, whose members I've employed here on my property, and I've also rented an office from. One of the brothers has a small 2/1 for sale at $100k, and he owns it free and clear. I have no real down, but could borrow against this property I own, or hard money, or he could finance the whole thing at a strong rate and I could re-fi as soon as the note matures and in the meantime build equity (could use some lovin' + color) and refi asap with a conventional note. And on and on.

I meet them (as I've said, they know me (and I was always early with my rent, so that's history)) tomorrow at 10:15, at the property. No, I've not seen the inside yet, but I have comped it out and some of those classic (1914) 2/1s have cruised around at $175K.

Insights???

I need this house...

Thanks a mill!,

ADM

What are you looking to do with the house?  Live in it or flip it?

Any specific questions?  Without knowing a rehab estimate, it's impossible to know what a good price is, but if they own it free and clear and want to get rid of it, there could certainly be some room for negotiation.

@J. Scott,

Hi, I'm a fan. :)

Curb appeal would go along way with this on. I'm not so worried about the price as the second BDRM would be an office write off/right off.

Though I Dont know the buyers needs or what I'd need to do inside, it'd solve plenty of problems by just being back on the grid and in town.

It is a FSBO, and unlisted/off market except for a sign out front. And its being lived in by the couple I rented an office from. Seems timely and fortuitous..

Also major S.F. dollars coming in on a 'green' deveoplment project right there. And two ready vacant / distressed homes right behind the one i want to wrap up tomorrow. If cash is needed, ill make that bird fly.

...being totally objective, not employing emotion whatsoever...

Are you assuming that they would only finance at high rate? or did the seller actually say that?

As it turns out a storm had thrown some water up the eaves of the metal roof, that was not correctly installed. Minor, but showed through the edges of one wall.

Seller wants a home run at 100K to walk away, but I know cash would talk him down. He's owns it free and clear, as well as a few other in town. But knows he'll have to file a claim on the current insurance to bolt down that roof and check sheetrock. 

Upside to be done, exterior cosmetics, new front deck/stairs, and then put in a staircase (like so many homes of the same construction in this town) and finish the the large attic with livable space (possible second bath up there). ARV @ current comps 160K, but would recommend renting for a year or two for the market to catch up and the large project close by to develop.

I see it all there, but I'm still working on getting my private funding in place to move on things. And then another one pops up.  I love the hunt.

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