Georgetown, KY · Member since 2014 · 179 posts · 55 votes
Looked at a Townhouse. Here are the stats.
3 bed that had the 2 smaller bedrooms modified to make one large room. so currently a 2 bed 1.5 bath. Brick faced and ~1100 square ft.
The place needs a roof (~4k)
The place had cats and there is urine and poop in EVERY room. I nearly vomited when I walked in. 100% of the floors need replaced and the baseboard has poop smeared in it. It will need paint all around.
I have another unit that is the same floorplan but the proper 3 bed layout. it rents for $650 and I bought it from the same seller for 40k last month. It also needed a roof and about 1500 in work.
How high should I go on the next property? 28k assuming 12k of work? or less ?
Why would you do this? The place is trashed and will be very expensive to fix. Removing the smells and damage from the cats will be a substantial issue. Your limited management time as a real estate investor is best spent finding new deals that add value. Aren't there units in better condition than this one?
it is on a crawlspace so the floor would come up to the baseboard then I would have to paint the floor with Killz to seal in the smell. same thing with the walls and even ceiling I would guess.
I did it in my duplex 3 years back and it has been fine so far. ( new pets are not peeing in the spots where the last animals did)
I meet the seller at the property Saturday morning to go over everything.
If buying at the right price anything can be a good deal!
Short story: Assume all floor coverings and portions of the sub-floor will need replaced. Walls need light drywall work and all walls and ceiling will need 2 coats (Kilz & paint)
Details:
Water damage at the front door (needs a new front door and sub-floor)
Water damage in the kitchen where the sink is. Cabinets on the floor level are shot.
Range / Oven does not work.
Kitchen floor / sub-floor needs replaced.
Half bath needs wallpaper removed and a new exhaust fan
Full bath needs wallpaper removed and a new exhaust fan. Show drain runs very slow.
Needs a new wall framed out where bedrooms 2&3 were converted into one large room.
Door hardware needs adjusted throughout.
The unit I bought 2 down from this one appraised at 48k needing only ~3-5k worth of work.
Next step is estimating all of the repairs so that I can adjust my offer price accordingly.
@Judd Campbell Lowball the offer. Big time. I would offer no more than $18K. Then walk away if it is countered. If it is still available in 60 days, offer $2K less.
Most will feel it is too much work, so you will probably not have competition. Since you know how to deal with it, that is the kind of job where you can make great profits. If you don't get it, consider the retch factor and what you avoided. If you do get it for that price, use the profit as a balancing factor for the disgusting conditions.
And also, use oil based Kilz throughout as your primer. It works miracles.