This is a first post for me and i know i can get good advise here. Ive come across a charming 1475sqft 2/1 SFH built 1958 in a marginal neighborhood in tampa fl. It sits right by USF university/I-275/busch gardens/adventure island. The seller bought it for his daugjter to live in while in college. She is gone and he really wants the house gone. Houses in good shape sell for around $80,000. With that said, the roof is leaky and im positive there is mold. Strong smell. Is mold a no go? The seller was asking 55k. After speaking with him, he just wants to dump it and would take 15k for it. It could be a good rental or maybe flip.
@Daniel Wiley Hello and welcome to BP. I would't say any deal is a "no go", but you have to make sure that the numbers work. Have you found out how much it would cost to have a mold remediation company come in and get rid of the mold? I would just add up the all the cost (including addressing the mold issues) to repair the property to be a good rental or flip and then go from there. If the ARV is $80,000, I would think that buying it for $15k would make sense...unless of course there are other major issues with the house.
Best of luck and keep us posted on how it goes.
I'd contact a mold eradication company in FL and talk about possible max cost to eradicate, and if they guarantee the work, etc. I just did a quick Google search and found one in another area of FL, so there should be one local to you. If they can eradicate the mold (if mold is even an issue) for your max dollar amount you're willing to spend on that, then consider the cost of the roof repair, and it still leaves you with an out-of-pocket amount you're okay with, then go for it.
I can't imagine that you can't get the mold eradicated and the roof fixed for $40,000 or less. Then you're still $40,000 in equity once you get it in "good shape."
Then, if you can't sell it because of prior mold issues (which have been eradicated by professionals), you should be able to rent it.
Mold sounds a lot scary than it really is in most cases. As long as you cover your bases and have a licensed company remove the cost is usually a lot cheaper than the discount given. I purchased a sheriff sale 1000sf had mold throughout the crawl space. The entire crawl had to be treated total cost was 2500 for a cleaning treatment, remove old vapor barriers, and install new. Purchased for 62,000 rehabbed total of 13,000 sold for 92,000. Not a home run, but ill take it .
Thanks for the input everyone. Im bringing in outside money for the first time and wanted to see if serious mold is worth fixing in a marginal area. I want to be cautious, but dont want to pass on a good deal because of mold.
Mold will scare buyers away and make the seller think their house isn't worth much. It's easily fixed for a few thousand dollars. Mold smells like money to me.
At 15k it sounds good at face value. I agree with others. Call a few mold remediation guys and get some estimates. And roof leaks can be fixed.
Evaluating a house right now with mold throughout--floors to ceiling. One bid was $37k to remover. Another at $18k. The roof is $10k to repair. It all comes off the top on the offer in order to make sure a deal is a deal. Good luck...
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