Looking at this as a first flip. It's a 3/2 on a quiet dead end street just outside city limits, but within 2 miles of the local Community College. It needs paint, flooring, bath and kitchen remodel on the inside. Has a weird layout where the kitchen sink is in almost another room from the stove, you can't see one from the other because of a wall. The cabinets look reusable, if I can get someone's tile counter off without destroying them and can make them work in new area dimensions. It's gonna need a new singles and probably sheeting on the roof. My biggest concern is the slightly sagging ridge line above the carport. Also looks like the beam across the entrance to the carport is somewhat sagging, I'm guessing from the lack of a center support and such a long span. I doubt it would ever fall, we rarely get much more than maybe a couple inches of snow and the most I've ever seen was @ 8" some 25 years ago. I have seen far worse roofs than this one and most don't seem too concerned. But, what about a buyer? Would I lose too much interest because of it? The home is listed at $41k and the ARV is probably somewhere in the $85k range. No recent sales in the immediate area to really compare.
I think I'm moving to Jackson - great house! Lots of potential for curb appeal!
You can always make an offer "subject to inspection". That way you can tie up the property with very little risk. As you walk around the property with the inspector, he will point out things to you that maybe you have missed and also give you a ballpark as to the cost to fix it. Gosh, as far as the roof is concerned you definitely want an inspector for that. No lender will lend without a good roof. Even if you pay cash with flipping in mind, the cost to do the roof as well as the other remodeling (kitchen, baths) might put you over the top. Would this be a good fixer and keep to rent out and start building your road to wealth? Would it add value to convert the carport into a garage? It definitely needs landscaping - fencing would attract families. Go to Home Depot to have them help you redesign the kitchen. They do it on the computer and I believe it's free? Or at least get a designer for a couple of hours - it will save a lot of heart ache.
Hey man congrats on the potential of your first flip.
To me right now the main thing is that you said there are no recent sales in your area. I would be more concerned with that then construction.
Once you determine if people are actually buying homes in that area, and make sure they are being bought buy homeowners and not landlords. As those are two different buyers and will drastically effect your ARV.
Andrew Cordle, Andrew Cordle | [email protected]
Renting would be a secondary strategy if we couldn't get it sold quick enough. Going into this with my father as he just retired two weeks ago and he's not one to sit still. He has I think 6 rentals already in his small town, mostly smaller older homes that he rehabbed himself on weekends when he was working. Him and I both would like to do a few flips first to build immediate capitol before doing long term rentals. In this area, I think dollar-for-dollar, I'd rather have duplex or quads for rental income.
There are sales in my area, just nothing within a couple miles of that particular location that isn't a totally different neighborhood. This town is strange to me in real estate layout. I can take you to an area with $1/2 mil homes in gated neighborhoods and I could stand at the gate and hit section 8 area that's on the same street with a good slingshot.
@Chris Phillips What you should be concerned w/ is not having any sold comparables in the area. You should only purchase this if you can execute a back up exit strategy to rent the property.
I went and looked at it again with a realtor today. Talked to the lady living next door, she said that has been the only house that had changed hands in the past 10 years or longer. She had lived there since the house was new and just built an addition after her husband died. The people in the house on the other side had been there for many years as well. They rebuilt on the same lot after their home burned down a few years back. There is only 12 houses in the neighborhood. There were several 1ac lots that show sold last year, all on same date for 40k each, according to Zillow. But, we can't make an offer on it for another 6 days, so we'll see.
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