Gut(?) Rehab Estimates on Foreclosure
Good Morning BP Community,
I'm looking at a owner-occupant(it probably would be sold by now otherwise) foreclosed property in Huntsville, AL and wanted peoples quick opinion on if this is even worth pursuing. Would be a buy-and-hold/BRRR.
Walk-through Video: https://www.youtube.com/watch?v=QeiuirTqxcg&feature=youtu.be
Here are the details:
- List Price: $13,900
- 1600 sq. ft. 4 bed/2 bath
- (C-) area, but gentrifying
- Comps with med. builder grade finishes ~ $70K-$100K
- Rent Comps ~ $900/mo
- The house has multiple code violations (see picture below):
- At the very least needs(new): roof, electrical box, water heater, a/c unit, flooring, windows, doors, kitchen gut, bathroom gut, couple walls removed.
- As far as I can tell the structure itself is o.k.
So...
This would almost be a gut rehab in my eyes. The bedroom/bathroom walls all seem fine, but the "living area" is separated by an awkward couple walls(see video) that I would want to remove and if it make sense add a support beam and open up the kitchen and living area completely. I know it's hard to estimate gut jobs like this but I was hoping some professionals might give me a ballpark idea. Currently I am estimating $40/sq.ft, so all in at ~$78k which means I'd almost be breaking even.
Huntsville, AL is a hot market. Another option would be to buy the property, demolish the house and hold the land until a new build makes sense.
Everyone's input is greatly appreciated! Thanks so much!