Rehab deal in Philly what yu guys think?
Asking 198,000 needs around 50,000 in rehab + 30000 = holding+2 closings. Comps average 300000. What you guys think I should offer for the property?
Am I off on my holding and closing costs?
Honesty, compared to the others that are selling in this area, how does this house look? Can you sell it for more then 300K? Are you doing the rehab on your own? How long do you think the rehab will take and does the time that you are putting into it, justify the profit?
The other question I would ask is, are properties selling in this area that are not being offered at a big discount? I have to keep reminding myself that this is a different market then it was 6 months ago and in my area, nothing is selling at the old market value. Just this week 2 more homes went on the market next to my rental. That's 6 signs in the front yards of homes within 200 hundred yards of my place on the same street.
Sorry, but I do not have enough experince to tell you what to offer. If I can't see the home, inspect it, pull the comps and know the market, I could never tell you what to pay for it for a rehab.
From a rehabbers point of view it would look like this:
(ARV x 70%) – repairs = max price
Using your numbers:
(300,000 x 70%) – 50,000 = 160k max
8)
Originally posted by "GreenHorizons":
I gave an offer of 140k, lets see what happens.
So.... How'd it work out?
Josh
As the numbers and the replies indicate there is no real deal here. At the same time it could be a great project for someone looking to get a home cheaper and then do some improvements.
Any update? GreenHorizons did you buy?
John Corey
Ernest,
Thanks for the update. Lets us know if the offer is accepted, countered or otherwise.
Good hunting.
John Corey
Even if your new offer is accepted, the project is questionable from an investor's standpoint (but not a bad deal for a homeowner) depending on your exit strategy.
Purchase Price + Rehab + B/H/S Fees = 230K
Assuming that your estimates are correct, your final numbers would be approx. 77% of market value---not much room to wholesale, but you could possibly squeak out 10% if you sold it retail.
Regards,
Scott Miller
Originally posted by "EZLoanz":
Purchase Price + Rehab + B/H/S Fees = 230K
I'm assuming that "B/H/S Fees" are:
Buying/Holding/Selling Fees?
JGD
Correct...
Originally posted by "joshgd4":Originally posted by "EZLoanz":
Purchase Price + Rehab + B/H/S Fees = 230K
I'm assuming that "B/H/S Fees" are:
Buying/Holding/Selling Fees?JGD
hey for a local philly deal thats great! the hasidics are walking the streets with suit cases of cash and buying up anything that can hold 10-12 students for rentals. If you come across anymore 60k deals let me know-I also know of a great local philly bank that will do 100% ARV !!
Originally posted by "The_Specialist":
If you come across anymore 60k deals let me know-I also know of a great local philly bank that will do 100% ARV !!
Can I assume this is likely to be a local bank and they only lender in the local market? The 100% ARV sounds great when you have the right deal.
I assume they look for really solid credit. Are they funding repairs and then expecting to escrow the repairs?
John Corey