Tomorrow I'm going to do a walkthrough on a 2,200 sq foot wood frame home in the Bradenton, FL area. The ARV after comps for the property comes out to at least 200,000 and the owner is willing to sell for 80-90k based on all the repairs that are needed. The thing that concerns me though is the owner stated, "This house may have to be leveled and a new house be built because it needs so many repairs".
So my question is, when I do a walkthrough tomorrow, What specific repairs/cracks/molds should I keep my eyes peeled for. I need to know the "deal breaker" repairs to look for! Let me mention that the house was built in 1926 and is a wood frame house ( I think that means I need to look for termite damage[how do I do that] and/or foundation issues[how do I do that] ).
Keep everything at site, have one gc walk it then two more to solicit bids. have them itemize it room by room and item by item on the bid, have it written down what needs to be done per room, so when you draft contract, you can control,those costs if you need to expunge them. have termite guys come in and give quote, as well as foundation company. three bids at least is key.
I would recommend walking through the property with a contractor. This will help you see all the repairs associated with the rehab.
The comment the owner has shared about the house being razed is a huge value building opportunity to pay even less for the property. The market for properties that need a tremendous amount of work is very slim. Use everything the owner says to your advantage when negotiating.
I second getting someone with a little more knowledge to walk through with you. Homeowners often think that the property is worse (or better) than it is.
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