Looking to get your inputs, suggestions on possibility of this remote rehab opportunity.
The house in question is 3 Bed, 2 Bath around 1600 sq ft. This is probate sale and price of house has dropped from 140k to 130k over the time (been on market for 100+ days).
I had the realtor check out property and he has sent me photos - apart from general rehab needs, one more concerning is of Wood Ants at two places. As shown in pictures here, the backyard door needs to be replaced with trim and also some damage in kitchen area.
Any advice/suggestion on going ahead with this deal? The houses in nearby area are being sold for around 150k+, so it looks like its around 20-30k below market due to probate sale and also this kind of issues.
Note: I am planning to go all cash (as recommended by realtor) as this is probate sale.
I have some advice. Walk away and get a new realtor.
The words remote and rehab together are bad enough, but there is nothing special about this deal.
the house has been on market for 100+ days, there is a reason for that, there are a lot of better deals out there. 30k below market doesnt excite me even without rehab. Trying to rehab a house that is more than 30 minutes from you house is hard enough, as you are likely to get screwed by contractors and in your case an agent.
The damage from the wood ants could take you to above market price alone There is no need to even consider this one. Kick you agent to the curb you can do better than that on craigslist without any marketing. If an agent brought me this deal I would delete his phone number.
Sorry to be so brutal but some of the best deals you will ever do are the ones you walk away from.
To your success
A good rule of thumb is .....If the locals aren't biting, don't be that fish!
I don't see the asking price number working. In my world "General Rehab" means cosmetics throughout to an A+ showing potential. This alone would be in the neighborhood of 10k on a 3/2 house. (flooring, paint, fixtures, hardware, cohesive look, landscape etc...)
Add holding costs ?, add selling costs (10k for commission, attorney, title etc..) and you've just broken even.
Add the ant problem....? You're losing money.
Add the inevitable unknown problems....? Seriously bleeding money.
Now, that being said, when properties have been on the market longer than 3 months, you should have no shame in making a ridiculously low offer- make that Realtor twitch at the thought of presenting. But frankly, I don't recommend and wouldn't attempt out of area flips simply because I know that managing them and having a trusted team are key to their success. BUT....if that's what you're doing, all your offers should always be low enough to cover all the major unknowns.