I saw a house yesterday that is gutted and cleaned out. New electric, roof, porch, plumbing, drywall. The work is solid but unfinished. Needs full bathroom (shower, toilet, sink, etc) and kitchen. After renovation value in the area is about $150k for old but livable, to $220k+ for nicely updated homes. There is a lot of construction happening in the area. Luxury apartments and single homes. Walking distance to the Philly train and Main St. w/ good breweries, restaurants and shops. They have an offer for $90k cash and wanted to know if I can top it. At $95k cash with a $45k renovation budget, do you think it’s still worth it?? The area is a Blue Ribbon school district BTW. Thank you!
I saw a house yesterday that is gutted and cleaned out. New electric, roof, porch, plumbing, drywall. The work is solid but unfinished. Needs full bathroom (shower, toilet, sink, etc) and kitchen. After renovation value in the area is about $150k for old but livable, to $220k+ for nicely updated homes. There is a lot of construction happening in the area. Luxury apartments and single homes. Walking distance to the Philly train and Main St. w/ good breweries, restaurants and shops. They have an offer for $90k cash and wanted to know if I can top it. At $95k cash with a $45k renovation budget, do you think it’s still worth it?? The area is a Blue Ribbon school district BTW. Thank you!
Hi Elaine. I see this is an older post. What happened with the property?
@Chris Wyche I'm waiting for an estimate from my contractor. We spent over an hour at the property planning the rehab. He's advised I make a very low offer as he'll have to redo some of the finished work.
@Chris Wyche I'm waiting for an estimate from my contractor. We spent over an hour at the property planning the rehab. He's advised I make a very low offer as he'll have to redo some of the finished work.
Gotcha. Equity sounds decent. I can take a look at the comps if you'd like a second opinion on it. I'm a realtor
Real Estate Agent · Philadelphia, PA · Member since 2018 · 428 posts · 484 votes
6y
@Elaine Lai If you have a contractor that you trust verifying the 45k rehab budget in an area that is as good as you describe- get off the forums and beat that offer! I would be curious to know where the ARV is being derived from.
@Garrett M. makes a good point about taxes if you are looking to rent but it seems like this is a flip play through and through and a job like that doesn't take so long that the holding costs via taxes would kill the deal for you.