4 bedroom home in Michigan
Hi BP,
I'd love to get your thoughts on this potential deal.
Sale price: 4 Bedroom, 2 bath - $87,000, VA foreclosure.
Location: Michigan, area with good school district in Oakland County.
From the CMA, seems that the average cost per sqft was $104 (this property is $64). So say we fixed it, resold it for that sqft. Then we're looking at $135,000 ARV. Maybe $140 to be generous since it's a 4 bedroom and everything else in the CMA is 3 bedroom.
Rehab cost
Assuming we purchase at $87k, then the amount of profit for a flip is based on rehab costs. This requires someone with real experience, but off the bat, I know we need to:
- Repaint the interiors ($2-3k?)
- Carpet the upstairs bedrooms (3 small bedrooms - 2K?)
- Replace the flooring in the kitchen. (2k?)
- (What's your typical estimate per sq ft for flooring related things?)
- Fix the 2nd floor bathroom (No idea what state it's in. could be working and just winterized..). ($4k)
- The windows seem to work, but about 5 window panes are broken. ($2k)
- No appliances provided, so new appliances should be installed. ($2k)
- A few smaller odds and ends with broken cabinet doors etc, but fairly minor. ($1K)
A few interesting oddities to be aware of:
- There isn't a garage, but there is a brand new shed where there should be a garage. The backyard is enormous as this is a 5.8k sqft lot.
- This is 1.5 streets away from a train line!
- There was a permit taken in 2001 to look at some sewer repair work, but the permit was never closed. I don't know whether this means it was fixed and just never updated.
I'm happy to either rent or flip it depending on circumstances. ($1350min average rent in the area.)
Happy to hear any and all thoughts!