I was curious if anyone else has taken a look at this property and had thoughts on it.
I walked through it on Sunday and thought it had potential but I'm still pretty new at this and have a difficult time projecting repairs/rehab costs.
The property clearly has a few issues but overall I think it could make for a decent BRRRR deal if I can get it at the right price. The items that I'm seeing as large issues are as follows:
- foundation issues (which likely lead to water in the basement)
- Needs a new roof (within a year or two)
- Screened in sun porch needs to be torn down (or somehow salvaged)
- downstairs half batch needs to be gutted and replaced.
- Needs new siding (possibly lead based paint)
Otherwise, everything else is in fairly good shape, but probably could use paint throughout and maybe new counter-tops in the kitchen.
After doing some research on comp sales I estimate that the ARV to be between 115K to 125K.
I tried tailing everything up being very conservative about the repairs and I think it would run roughly 40K for all necessary repairs. However, with their being a large issue with the foundation I'm nervous that my estimate might be too low.
This may be a lot more work than I would like to put in on my first BRRRR deal but thought I would at least get some experience with the analysis and see what the "number" is for this property.
Any suggestions or advice is welcomed!
The numbers wouldn't be great for a rental in my opinion and you wouldn't get all of your all of your money out if you did the BRRR method. To me you would be paying full retail for that house may as well buy something with no work needed and rent ready.
Thanks for the input @Josh Nix ! I think you are probably right. I am wanting to force something to work for the property when the numbers don't make sense for either option. I am getting anxious to go out and buy something but I likely will be better off waiting for winter to slow down the Sellers market.
I just noticed I spelled Lincoln wrong as well and can't edit it from mobile.