Is this even worth looking at?

2 Replies

HI all,

I am trying to look at listings on pillow to get an idea of what's a good investment.

Can you look at this property and tell me your initial thoughts?

http://u.zillow.com/p3q7Fw

Erik,

If you are looking for some help analyzing a deal, you should do a bit of research on the subject property and the comps in the market. 

What are properties selling for fixed up?
How much work do you think the property needs?

Run the 70% rule analysis and then start crunching numbers if it makes more sense. 

Good luck!

Hi Erik,

I would say that this is worth doing more research on, but there are some things to consider:

Zillow is not a good source for comparables.  Talk to a realtor that is familiar with the neighborhood and ask for comps for similar properties.

The listing states that the property is AS-IS, which means you get to inherit all of the problems it comes with.  It could require minor repairs, but most likely will require a lot of work instead.  If you're going to end up putting 50K - 60K into rehab, then it's definitely not a good deal.  I think the margin might be too thin on this one, unless you can get it inspected and estimated and put in a good low offer that gives you a cushion.

If you're looking for a first time flip, I would recommend doing some legwork and either drive-for-dollars or put together a mailing list. You might have better success finding a deal that way than looking on MLS.

Once something hits MLS, you're competing with everyone else out there, including end buyers who are looking to live in a house after it's fixed up.

-Joshua

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