I just got a call from a distressed owner who has a 2/1 in Loudon Tennessee that he's wanting to unload for 50k.
He claims he had a realtor tell him it could sell for 110k. He also claims that he added 2 rooms to it but I doubt that'll stand in a 1200sqft house.
Still, he only owes 40k and I think he's desperate enough to sell for that. I just need to know if I can unload it considering Loudon is on the edge of civilization.
Have you done any due diligence on this property? What other 2/1 SFH have sold in the last 6 months on the exact same block? What all needs rehabing? What's the median average of a sfh in that area? I'm sure anything can be sold just not sure if this ones worth it or not. Can you give anymore details about the home? @Benjamin Barredo
Try to find comps using the MLS or CRSData (service has a fee, but there is a limited time free eval. Think about the number 10. Find a lot size +/- 10%, home sf +/- 10%, built with in 10 years of your prospect, and within 1/4 mile, same neighborhood is high preferred, and don't cross any major roads. use a minimum of 3 comparable properties, but 5 is much better, 9 is golden. it is best if some are a little big or newer, and others are smaller or older. In small towns this can be a challenge, so you may have use 15 instead of 10, then adjust accordingly.
I had the wrong address. The guy had bad connection. The House is a 3/1. I'll check out crs data. I couldn't find any sales on Redfin. He house is super ugly too.
What do you need to know? My question is mostly if anyone know the market. I can do my own due diligence about the house. The market I'm not experienced on studying so what type of stuff should I be looking for?
CRSData should be able to tell you what the market price is for the neighborhood. You will want to pay considerably less than that.You also need to look at the trend for that town, up vs. down. If the only factory in town has closed up, and everyone is leaving, don't buy at any price.
Consider your exit plan, if you are wholesaling/wholetailing, you need to know if there are buyers in the market, so look at the inventory qty. and compare it to the average sales per month. you will want that to be less than 6 months. you can also look at the avg. days on market. If you are planning to hold it, are there renter in the market? How will you manage the property? Is there a reliable management company in the area? If you are going to rehab, can you find good contractors?
Once you answer those questions satisfactorily, get in your car and go make sure the house is in decent condition.
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