just looking for an opinion..good deal to pursue or no?

7 Replies

http://s1276.photobucket.com/user/seabarsik/librar... pictures of the property

single-family home(3 bed,1 bath) approx. 1131 sq ft. no electricity or water connected but can be easily reconnected,city sewage is connected.. 0.14 acre lot size taxes are about $600 per year and asking price is $7000..I have not gotten an estimate on what the repairs might cost for a complete rehab and thats where ya'll might come in..thanks for any info

If you plan to buy hold and rent: How much would it rent for?  Low to high?

If you plan to buy and flip: How much would it sell for after repairs?

Looks like an enormous amount of rehab work is needed. On a scale of 1-10, with 10 being tear down and rebuild, this looks like a 9. If you are new to rehabbing i'd skip this deal and look for something a little easier...

@Joshua Caldwell

With all that lath tied up in ******s, it appears as though someone go into the demolition and either ran out of gumption or discovered the property was unredeemable.   

Any offer on this property should be based on land value alone.  Before making such an offer you should determine whether the current structure is worth fixing or if the location warrants its demolition and replacement.

Medium greenapartmenthires 1024x1024Roy N., Louer Louer Ltd. | 1.506.471.4126

Originally posted by @Thomas Fortune :

Looks like an enormous amount of rehab work is needed. On a scale of 1-10, with 10 being tear down and rebuild, this looks like a 9. If you are new to rehabbing i'd skip this deal and look for something a little easier...

 I agree and disagree, Thomas.  My first buy, rehab, and rent needed new plumbing and electrical and I came out okay.  If the purchase price is right AND if the investor has enough money (either in hard cash or via some sort of loan) to complete the rehab, it's not an untenable situation.  In fact, it works out great because the new landlord will end up with a property that should have no serious plumbing/electrical problems for at least a decade, maybe two.

But, if the investor is walking a financial tightrope, or is entirely new to the world of rehabbing and landlording, it might be a bit much. As long as the projected rent or ARV is high enough, the $7K purchase price looks mighty enticing to me.

EDIT: Oh wait.  Didn't see the pictures until just now.  Whoa. ;-)

Based upon the condition of the property, it looks like a teardown to me because it doesn't look like there is much to be salvaged from a structural standpoint.

Remember, just because it's $7,000 doesn't mean its a deal!

David Robertson | 816‑388‑0197 | http://www.houseflippingspreadsheet.com

lol, thanks all i guess i got my answer already..yes i am completely new to the entire real estate investing game...to answer a post from earlier it would be $45-$90k for the comps if it were to b flipped and $500-$650 on the rent side...NOW i was just kinda thinkin that if the floors were level then it might just be worth it?

From the pictures, this looks like a LOT of work for a (best of the worst case scenario) $38,000 gain.

I would keep looking.  This property will probably still be around in another month.