Updated over 9 years ago on . Most recent reply
Is it worth it?
I was referred to this house by a realtor which is going for $275k. 7beds 1 bath built in 1910, 2250 sq ft. 70% fire damage and city has liens against property. The comps around here are in the mid to high $500k. It is in a B to C class neighborhood. I am thinking its going to take at least $100k to redo everything. This would be my first flip so a little concerned if it would be a wise decision to start here. If comps are true it would be a worth while payout. I am a new at this so what would you veterans do?
Most Popular Reply
@Tim Lee, your offer should be no more than: Land value, minus tear down cost, multiplied by 70% (ie. same as any Flipper working out their margins, but, based on 70% Land value ONLY)!
If that gets you the "deal", THEN you can decide whether it really is a tear-down-then-develop job, or a genuine rehab/flip opportunity (I suspect: tear down)...