Paducah , KY · Member since 2016 · 8 posts · 3 votes
This property was brought to me from out of town for a flip potential. I am brand new to the game and was hoping to get some advice/input from the BP community. My first question is, based on the couple of photos below, what major issues are seen and also costs involved to rehab, mainly the first picture (exterior).
My second question is this was a duplex before, should I stick with that (duplex) as a buy and hold, or turn it to a SFH?
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
10y
From the little information provided, there is absolutely no way to know what the scope of repairs will be for that house, or what the cost will be. It could be $20,000 or it could be $200,000, depending on a hundred different factors.
My recommendation would be to do a walk-through with a good inspector or contractor, put together a detailed scope of work and then start getting bids.
And, based on your level of questions, I think it's safe to say that you're probably not ready to do a long-distance flip. I've flipped over 200 houses, and I still find it difficult...
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
10y
From the little information provided, there is absolutely no way to know what the scope of repairs will be for that house, or what the cost will be. It could be $20,000 or it could be $200,000, depending on a hundred different factors.
My recommendation would be to do a walk-through with a good inspector or contractor, put together a detailed scope of work and then start getting bids.
And, based on your level of questions, I think it's safe to say that you're probably not ready to do a long-distance flip. I've flipped over 200 houses, and I still find it difficult...
@J Scott is 100% spot on. Even folks who have been through lots of rehab projects still find it tough to give an accurate rehab value without a thorough inspect. Don't be like me. The first flip I did, I walked right by the giant water stain in the ceiling, and said "oh that's probably just a few rivets on the metal roof that need tightened." After some very expensive repair, my roofer calls me his favorite client.
Check out the free BiggerPockets Podcast - A weekly podcast with interviews and a ton of great advice. And you get the benefit of having over 100 past ones to catch up on.
Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and rehabbers (cash buyers). Find them through Google and meetup.com
Home Stager · San Luis Obispo, CA · Member since 2016 · 312 posts · 49 votes
10y
good morning tom, welcome! newbie here too. just wished to introduce myself. formerly from washington, dc, i'm just getting started in the staging arena in california and i'm looking to make some connections as well.
j scott and mike are spot on. get all your ducks in a row. the place has fabulous bones though. as for duplex vs sfh, do comparisons in the area. size of each apt and what that might rent for vs the sfh. it would be beautiful being returned to a single family but... and what are the costs of returning to sfh vs keeping duplex scenario...
Oakland, CA · Member since 2015 · 44 posts · 32 votes
10y
Hi Tom Howard !
Just to chime in with my two cents as a newbie investor myself, I would keep the property as a duplex. Since you are newbie it might be wise to start by focusing on bringing the property to it's prime state and finding great tenants. Owning two units will also, in most cases, maximize your profits since you will be renting to two separate families / groups of people, and will also give you the ability to "House Hack".
House hacking is the simple method of living in one unit while renting out any other units, and even the other rooms in your unit. By living in your property, your property is now considered your primary residence, even if it makes you positive cash flow. With primary residences, you have many more financing options. You can read more about this in the books listed under the "Education" tab, in "Materials and Resources" here on Bigger Pockets!
This is all just my opinion as another newbie who is also learning the ropes with the help of BP. You're off to a great start by reaching out on the forums.
All the best your future projects and investments!
~ Raquel Pea
Oakland, CA · Member since 2016 · 104 posts · 47 votes
10y
Hey Tom,
Just a thought- you have to consider the difference in type of tenant you will be renting to based on whether you keep it a duplex or convert to SFH. Maybe in this properties location it's not such an issue but I know that in a lot of places it can be. Including a lot of the midwest.