What are your thoughts on the way I laid everything out for the marketing of this property?

Question

https://sites.google.com/site/1729windianaaveelkhartin/

The property is worth around $50k-$55k $1,500 of repairs.

Rento meter has it at $700.00,

In the spring when this whole deal came around it was valued at $85k with a rehab of $12k. 2 other proerties with in 2 blocks were listed at $90k and $95k.  One was supposedly sold at $90k. I checked the county records and it showed a $0 for the transaction, but there was a transaction.

One recent at $90k but has true river views. That sale is pending.

These are all in nice neighborhoods, same or similar to the subject property.

Some of the recent sold comps are in closer to the heart of the city 4 to 5 blocks away, Those are either closer, or in the war zones. $15k to $45k.

So if I run the marketing with the web site, is it open enough for both investors and owner occupant?

Terri Lewis · Answer

Bill Gulley Thank You very much for your input. I value you and everyone with all your experience here on BP.

Terri Lewis · Answer

Thanks for the criteque. It really helps.

Terri Lewis · Answer

In re reading this now, I see what your saying @Hattie Dizmond My statement should have been

If the property was fully rehabbed it would be easily worth $75 to $78k I was not clear to the fact that the "as is" value with needed repairs of around $1,000 it would be worth around $55k.

Bill Gulley · Answer

Terri, I said I'd look today and just did. That would be gone in three days here in similar neighborhoods. Doesn't look like a big rehab but floors being refinished, maybe woodwork in some areas. Needs more decorating, lipstick and small details, like light switch plates.

They style reminds me of my grandparents' home but with a front entry and larger rooms, you have the same claw foot tub!

Seems 3 or 4 k would bring high 50s or low/mid 60s based on older sections here, but I don't know your market.

Your strategy seems fine, most want move in ready, but many look for a deal with sweat equity possibilities, that appears to be one. :)

Terri Lewis · Answer

I had a broker do the BPO and the average comes out low, but he said the same things. The one comp I would like to add in, which would make 2 in the $90k and would raise the average or value back up.  One has not been made public, the other is still pending, but shows up on the BPO.

The Assessed values here are around 20% lower than the market value. I look at those. The same site usually states the last sold dates and prices.

I am trying to show that an investor can put very little into it and have it producing. I like how you make a whole list and state what is needed vs. optional.

Hattie Dizmond · Answer

Ok...so, it sounds like you are using a combination of tax appraised value and some online valuation tools like (maybe) Zillow & Trulia?  If that's the case, you really need to do an actual comparable analysis.  If you don't feel confident doing that yourself, you need to get the help of a realtor.  You can pay - usually around $50 - for a BPO on the property.

Now, as far as the rehab levels, the way I've laid that out on previous properties is to provide a listing of the items to be rehabbed and an indication of which ones are mandatory and which ones are recommended.  For me, I see a rehab estimate of $1,500 on an investor deal...my first thought is "yeah, right".  Just saying

Terri Lewis · Answer

On the site I am showing it for $45k. Or that is the amount we have it up for sale for.

Terri Lewis · Answer

Good, point @Hattie Dizmond

I want to say 2 different levels of rehab. Basic needed: replace exterior door, repair kitchen ceiling and check for leak above the area.

Full rehab: paint walls and ceiling, refinish hardwood floors, repair and stain decks, dishwasher, and new windows.

The value's are showing lower now for the property, but only a few k on county appraisal. Various sites showed mid $80's and now they are showing mid $70's

Hattie Dizmond · Answer

I'm confused.  How did the property go from $85k with $15k of repairs to $55k with $1,500 in repairs?  And, you're talking about other sold comps that are either "closer or in the war zones".  How far away are those "comps"?  Are they in the same neighborhood?  How accurate are the comps you are using?  This all sounds really fuzzy to me.

What are your thoughts on the way I laid everything out for the marketing of this property?

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