What would it cost to fix it up, and what would the resale price be at that level of renovation?
Run these numbers for different levels of renovation, and that will tell you which one (if any) you should pursue.
I've never rehabbed a house before so I don't know what different levels of renovation are. I'm asking what you would do, like...
Update the cabinets? What would you do to the exterior?
If you updated the cabinets, how much could you sell the house for and how much profit could you make?
If you did the exterior, how much could you sell the house for and how much profit could you make?
If you blah blah blah...
These are the scenarios you have to run, and then determine which, if any, are the most profitable.
If you don't know how to do that, that's what you have to learn. If the business were as simple as someone on an Internet forum telling you, "Do this, don't do that, get rich," would you believe them? You shouldn't. It's not that easy. In fact, it's not easy at all.
You have to learn first, and then do the work.
For reference, BP has a great book on the topic...
Investor · Cleveland, OH · Member since 2015 · 6k+ posts · 2k+ votes
9y
If you pay more than land value - you paid too much. I'd want to offer LESS than land value.
As-is, that building is a blight on the 15 Acres.
If you have to ask how you can turn a sow's ear into a silk purse, are you ready to be out of pocket $80k before you even start trying? I wouldn't recommend this one for novice Flippers. My 2c...
What would it cost to fix it up, and what would the resale price be at that level of renovation?
Run these numbers for different levels of renovation, and that will tell you which one (if any) you should pursue.
I've never rehabbed a house before so I don't know what different levels of renovation are. I'm asking what you would do, like...
Update the cabinets? What would you do to the exterior?
If you updated the cabinets, how much could you sell the house for and how much profit could you make?
If you did the exterior, how much could you sell the house for and how much profit could you make?
If you blah blah blah...
These are the scenarios you have to run, and then determine which, if any, are the most profitable.
If you don't know how to do that, that's what you have to learn. If the business were as simple as someone on an Internet forum telling you, "Do this, don't do that, get rich," would you believe them? You shouldn't. It's not that easy. In fact, it's not easy at all.
You have to learn first, and then do the work.
For reference, BP has a great book on the topic...
Real Estate Investor · Dayton, OH · Member since 2017 · 107 posts · 51 votes
9y
Hello @Patrick Philip first id advise you to start with a flip that isn't so "intense" i guess you could say. This is one for someone a little more experienced. The price is wayyy tok high for the amount of work that it needs. You'd probably be lucky to break even after all of the repairs. But, to answer your question. Its a total gut job. You dont know whats behind those hideous walls, new kitchen, baths, flooring throughout, trim, light fixtures, doors, electrical, plumbing, siding/paint, furnace, water heater, landscaping, plus holding costs, interest, insurance and the list goes on. I think you'll be in for more than 25k. These are just some things that i see from the pics (not including the dreadful "unforseen"). You'd need to get an inspection. But all in all I dont think its worth it
Flipper/Rehabber · Montgomery, NY · Member since 2016 · 2k+ posts · 1k+ votes
9y
I love the basic description and $20-25,000 repair value estimate. I did an 800 SF home for $25,000 and it didn't need what this one does. I would immediately be thinking $35-40,000 minimum and then would need to see the house before I bumped up or down.
Are you planning to flip or rent? Do comps have open floor plans, nice cabinets and granite, or basic carpet, laminate counters and cheap finishes? Your kitchen could cost $4000-5000 or $10-12,000 depending on the finishes and what is expected.
The first one is tough to nail down, but I would be Leary on trusting a website describing what the renovations will cost, as that person will throw out the smallest number to gain interest.
I love the basic description and $20-25,000 repair value estimate. I did an 800 SF home for $25,000 and it didn't need what this one does. I would immediately be thinking $35-40,000 minimum and then would need to see the house before I bumped up or down.
Are you planning to flip or rent? Do comps have open floor plans, nice cabinets and granite, or basic carpet, laminate counters and cheap finishes? Your kitchen could cost $4000-5000 or $10-12,000 depending on the finishes and what is expected.
The first one is tough to nail down, but I would be Leary on trusting a website describing what the renovations will cost, as that person will throw out the smallest number to gain interest.
I plan to flip it. Do I need to bring contractors with me to evaluate repair cost?
What would it cost to fix it up, and what would the resale price be at that level of renovation?
Run these numbers for different levels of renovation, and that will tell you which one (if any) you should pursue.
I've never rehabbed a house before so I don't know what different levels of renovation are. I'm asking what you would do, like...
Update the cabinets? What would you do to the exterior?
If you updated the cabinets, how much could you sell the house for and how much profit could you make?
If you did the exterior, how much could you sell the house for and how much profit could you make?
If you blah blah blah...
These are the scenarios you have to run, and then determine which, if any, are the most profitable.
If you don't know how to do that, that's what you have to learn. If the business were as simple as someone on an Internet forum telling you, "Do this, don't do that, get rich," would you believe them? You shouldn't. It's not that easy. In fact, it's not easy at all.
You have to learn first, and then do the work.
For reference, BP has a great book on the topic...
What's the book?
I don't know how to run comps so specifically. When I look at Zillow, I just use price per square foot. I don't even think I know how to tell the condition the house was in when it was sold.
I don't know how to run comps so specifically. When I look at Zillow, I just use price per square foot. I don't even think I know how to tell the condition the house was in when it was sold.
I would suggest that instead of trying to jump into a project, you spend a few weeks/months learning first. Read through the forums here, and ask some questions.
Property Manager · Bowie, MD · Member since 2017 · 120 posts · 67 votes
9y
I would bring a contractor with you and really question him if he says that he could do all the work for $25k, and get it in writing. What does a $125,000 comp look like?
Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
9y
@Patrick Philip I'd first check the comparable to ensure the ARV is solid. The spread is slip and if you need to lower the purchase price for the new owner by 7-10K that will hurt ALOT! What you should do to the property is determined by what other sold homes had done to them. When the market speaks, we have to listen.
@Patrick Philip I'd first check the comparable to ensure the ARV is solid. The spread is slip and if you need to lower the purchase price for the new owner by 7-10K that will hurt ALOT! What you should do to the property is determined by what other sold homes had done to them. When the market speaks, we have to listen.
Isn't there some standard of what I should be doing to my rehabs? A certain type of cabinet? Certain types of appliances? A standard color of paint for the interior? Standard flooring?
@Patrick Philip I'd first check the comparable to ensure the ARV is solid. The spread is slip and if you need to lower the purchase price for the new owner by 7-10K that will hurt ALOT! What you should do to the property is determined by what other sold homes had done to them. When the market speaks, we have to listen.
Isn't there some standard of what I should be doing to my rehabs? A certain type of cabinet? Certain types of appliances? A standard color of paint for the interior? Standard flooring?
Some people do this to streamline their flips, but I have done houses from $145,000 to $300,000 ARV and wouldn't put the same cabinets and appliances in both. I use the same basic colors and schemes but usually end up with nicer finishes in a higher end house.
@Patrick Philip I'd first check the comparable to ensure the ARV is solid. The spread is slip and if you need to lower the purchase price for the new owner by 7-10K that will hurt ALOT! What you should do to the property is determined by what other sold homes had done to them. When the market speaks, we have to listen.
Isn't there some standard of what I should be doing to my rehabs? A certain type of cabinet? Certain types of appliances? A standard color of paint for the interior? Standard flooring?
Some people do this to streamline their flips, but I have done houses from $145,000 to $300,000 ARV and wouldn't put the same cabinets and appliances in both. I use the same basic colors and schemes but usually end up with nicer finishes in a higher end house.
What would it cost to fix it up, and what would the resale price be at that level of renovation?
Run these numbers for different levels of renovation, and that will tell you which one (if any) you should pursue.
I've never rehabbed a house before so I don't know what different levels of renovation are. I'm asking what you would do, like...
Update the cabinets? What would you do to the exterior?
If you updated the cabinets, how much could you sell the house for and how much profit could you make?
If you did the exterior, how much could you sell the house for and how much profit could you make?
If you blah blah blah...
These are the scenarios you have to run, and then determine which, if any, are the most profitable.
If you don't know how to do that, that's what you have to learn. If the business were as simple as someone on an Internet forum telling you, "Do this, don't do that, get rich," would you believe them? You shouldn't. It's not that easy. In fact, it's not easy at all.
You have to learn first, and then do the work.
For reference, BP has a great book on the topic...
What's the hardest part? For me it seems like finding deals where the numbers work. If the listings from wholesalers don't work out, I think Craigslist is my best option.
Hello @Patrick Philip first id advise you to start with a flip that isn't so "intense" i guess you could say. This is one for someone a little more experienced. The price is wayyy tok high for the amount of work that it needs. You'd probably be lucky to break even after all of the repairs. But, to answer your question. Its a total gut job. You dont know whats behind those hideous walls, new kitchen, baths, flooring throughout, trim, light fixtures, doors, electrical, plumbing, siding/paint, furnace, water heater, landscaping, plus holding costs, interest, insurance and the list goes on. I think you'll be in for more than 25k. These are just some things that i see from the pics (not including the dreadful "unforseen"). You'd need to get an inspection. But all in all I dont think its worth it
Good luck
Where do you suggest finding light rehabs? Craigslist seems to be my best bet at this point.
Highland, NY · Member since 2013 · 169 posts · 130 votes
9y
You definitely need to step back and educate yourself first. Good news is you are at the right place. Read through threads, read books, listen to the podcasts. You don't sound like you are ready to start a project just yet.
You definitely need to step back and educate yourself first. Good news is you are at the right place. Read through threads, read books, listen to the podcasts. You don't sound like you are ready to start a project just yet.
So where do you think is the best place to find deals? Craigslist? Where do you find yours? Do you do rehabs? I've been educating myself for years.