So im ready to take on my first property. i've formed a partnership with my best friend who is an agent which is very beneficial , i manage a hardware store which will be extremly helpful when it comes to buying material aswell as networking with other investors and contractors. so heres the deal we are looking at
single family twin ( reo) asking price is 62,500 going to offer 40,000 hopeing that works . house is going to need a kitchen (12,000) bathroom (6,000) going to change the radiator heating system to hvac (approx 4000) finish the basement (7,000) siding (6500) new oak hardwood floors (2500) new doors interior and exterior (5000) and a concrete patio out back ( 1,500) and other cosmetics (5,000)
we figure all said and done we would end up about 90,000 into the house which the market in the area has them going around 135,000 as a median and 165,00 high end 120,000 low . how does this sound to everyone any and all insight is greatly appreciated thank you in advance for your time and thoughts.
Terrance J Stirling Jr ( TJ)
sounds good so far - what's area like? Has an inspector looked at it?
the area is very nice well kept , its a corner property and on the opposite corner is a small mom and pop deli, at the top of the street is the local elementary school with a play ground and feild for kids aswell as a large playground/ football /baseball feild/ basketball courts a few blocks away with organized sports running concurrent to the sports season. lowes and giant as well as several food places about a block away also. deffinitly alot of conveinece in the neighborhood. no inspector has looked over the property other then myself and partner twice already
What market are you looking into?
Will you being involved in a hardware store help with the Rehab? Are you and your partner planning on doing all the work yourself?
outside of Philadelphia . We do not plan on doing all the work because we want to be listed with in 3 months and with our schedules us doing all the work would prohibit that. Me being in the hardware store gets me all of our rehab material at cost so we are going to pay while sale instead of retail which should save us drastically .
How many square feet is the house?
1240 on 0.06 acres
Congrats on finding a place. Keep me posted on your progress. I am still looking for my first as well. Sounds like you have a good base plan set up. Hopefully they will accept your offer.
thanks it comes off first look tomorrow so I'm hoping no one else jumps on it . If you like it someone else probably does too
Join the Largest Real Estate Investing Community
Basic membership is free, forever.