I have a property I need to try to get under contract, but I worry about the numbers. Not so much that they don't look good but that all the potential buyers don't want to deal with it because the numbers are so high. 4400 sqft home I can get under contract for around $109/sqft and the average house in the area is selling at $216/sqft. that is a huge spread for profit potential but my buyers don't want to deal with anything selling over #350k because it takes a jumbo loan and that really narrows the field of buyers from them. Am I crazy or are there investors out there that like the bigger numbers?
Investors dont care about $/SF they care about how much money they can make when they sell. What makes you think the house is worth more than $450K +/-. How much work does it need to get the value to $800K+? You need to know the value today, the cost of required repairs/improvements, and the value of the property after the improvements are completed. It sounds like you have some research to do @Scott Gardner . Give us more details.
Thanks for the insight... I have some comps of the property and I am going to be checking it out further for a better idea of repair costs. Is there someone that is good at judging repair costs that could give me some advise? This is (or could be) my first deal. I want to make sure the numbers are good and I am open to all advise.
You might want to get J Scott's book on estimating costs.
Most contractors don't want to take the time to estimate on a deal you don't have yet but many would be willing for a modest fee. Just consider that part of the cost of your education.
Ned Carey, Crab Properties LLC | http://baltimorerealestateinvestingblog.com/
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