First BRRRR, seeking out advice & analysis. (Dirt floor basement)
Hello Everyone!
I starting out with house hacking last year, moved into my primary residence, and now have been thinking about my neighbors house that has been vacant since 2019 and not selling. I started working my numbers, getting more information, was hoping you all could provide your insight on this property, and ultimately if I should go further with this or not. It may not be the most ideal BRRRR, but prior to learning about the dirt floor basement and potential shifting back porch roof, was figuring the numbers worked, would be a good learning experience, and the only time to acquire my neighbor house BRRRR wise. Along with the other improvements I can do down the road DIY at my own pace since it's next door. Much appreciated in advance for insight provided as I am still pretty new to rehabs costs, money pits to avoid, and ARVs. Property Listing, Google Drive with Picture of concerns, Comps.
I linked the listing, pictures of the questionable support beams and dirt basement (maybe back deck roof is shifting? 1998 tile roof), and local zillow comps. ARV wise based on the comps I am hoping would be around 110k, with some properties this year going for 120+, but last year across the road a property went 77k which is confusing. My property next door, different type of house, appraised 20k more than purchase price. Contrary to the pictures, all the flooring besides the kitchen and bathroom tile is now bad hardwood floor. The seller recently ripped out the main floor LVP that they just remodeled due to the hardwood underneath bowing, I assume due to the dirt basement floor. They bought and have carpet scheduled to be installed by Lowes next Thursday. I assume for the BRRRR numbers I would have to get a contract going asap to stop that from happening or else they wont accept a lower purchase price. This does seem to be a possibility, as the property is currently off market and once my realtor acknowledged I wouldn't be interested in this property with carpet, hurried up to let me into the property.
I overestimated the flooring costs for 6k carpet for now, intend to remove the back deck steps, and just make a balcony to reduce liability with those steps. The basement and potentially shifting roof is what I am unsure about if I need to do something for either the acquisition with a mortgage and/or refinancing for the numbers I need to get my money back. If I would have to do something with the basement, what would that be, along with an estimated repair costs, is what I am clueless for now until I do more digging.
Again thank you all so much!
