Hey, I'm wanting to get serious about real estate investing. I've only done one flip and it was my wife and I's first house. And it's been a couple of years and two babies since then.
I found a property in great neighborhood in my town that I am considering. It's a 3500 sqft house built in the 70s. It's listed at $65 a sqft right now. Most houses that are up to date and in good shape are selling for $90-105/sqft in this area. I've done a walk-through already and it was overwhelming of how much it would need done to it. But I think if I can get it for the right price that it could be very profitable. It needs to be updated, new flooring and paint throughout. New countertops. Update bathrooms. Foundation may have issues. Also termite damage to the siding. I would try to do the 203k loan to finance most of the repairs. And I would like to try to rent out my current house. Just struggling with a plan of action. I do have another walk-through with a contractor set up in a couple of days though.
Any tips, warnings, suggestions, input about 203ks, live in flips, foundation issues, termites?
do you already have a contract for 203K? Or is that your goal price? And have you already lined up financing (either with bank or HML)? When you say "overwhelming" what kinds of repairs are we talking about here?
Setting up financing is going to be the first step, if you aren't preapproved you likely won't get the house. Next I would change your analysis, because houses are not bulk foods; people don't pay for them by the square foot, especially when they are that big. Look at what comps are selling for, my guess is that the bigger the house the less $ per square foot. A 1,500 sqft house may sell for $110/ sqft but one twice as big likely won't. I hope it helps and I wish you the best of luck.
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