Old as Dirt Property | College Town
Investment Opportunity? Yay or Nay
1,400 SF, two story house built in 1920's. Selling as a duplex, but with the the option of financing as a single family dwelling. 1 bed 1 bath downstairs, 3 bed 2 bath upstairs, with 1 of the bedrooms downstairs (horrible functionality).
I'm looking at purchasing this property and putting about 3x the purchase price in reno into the property to create a duplex: 2bed 2 bath upstairs and downstairs.
Property looks as if it should be torn down. Structural foundation needs repair, and a total gut job. New MEP, exterior, interior plus adding in the 4th bathroom.
Comps are not in my favor for ARV, but my estimated mortgage is $1300, and rent for both units is $2,000+.
List price is $87k.. Comps are favoring that it should be sold for less ( possibly around $44-55k. I'm thinking not likely b/c it's in a college town but idk.
My budget is $180k but I don't think reno can be less than $140k.
After writing this, Idk why I don't put in an offer and see what happens, but the property has been on the market for over a month and I have contractors coming next week to hopefully confirm my reno estimates.
Thoughts?
Most Popular Reply
Here what I read-
Bad stuff
More bad stuff
Lots of expenses
Numbers that don’t look very good
I think I’m going to do it!
Why???? just because it’s for sale doesn’t mean you have to buy it. Doesn’t sound like it works, so move on to the next one. Not every house is a good deal, you can pass on it.
From your description I would not want anything to do with it. If AR costs are higher than comps… just buy comps.
Best case option-
Buy for land value minus cost to tear down the building And start over. Maybe put a modular in its place.