First Fix and Flip

1 Reply

I have a potential house I am looking to renovate and would like to know what a good offer would be. I am new to REI, but I have been in real estate for over a year and done many transactions for both buyers and sellers. The project I am looking to buy is on the MLS, and the price has recently been reduced still with no activity. It was originally listed at $60k and has since been reduced to $45,900. It is a bank owned property and has been on the market for 70 days. I offer 21k and it was rejected. I then followed with a 25k offer and I am waiting to hear back. Looking at the comps the ARV is about 95-115k. Here is a list of the work that needs to be done:

Total sqft: 1575
1st floor: 930
2nd floor: 645

Lot dimension is 100'x150'
Side driveway with access on the front
Back detached garage 1 stall access from alley way

Interior Floor 1

First two rooms total of 408ft^2
  • Carpets removed
  • Hardwood finished
  • Walls/Ceiling Painted w/ 8ft ceilings
  • Replace Windows - 3(2.5'x5'), 1(4.75'x5')

Small Foyer 39ft^2

  • Flooring (tile?)
  • Walls/Ceiling Painted w/ 8ft ceilings
  • New front door

Kitchen/ Dinning room 259ft^2

  • Wall paper removal
  • New counter tops
  • Appliances- (fridge, stove-top, oven, range, dishwasher)
  • Replacement Window- 1(3'x3')
  • Walls/Ceiling Painted w/ 8ft ceilings
Laundry room/mud room 180ft^2
  • New flooring
  • Walls/Ceiling Painted w/ 8ft ceilings
3/4 bath on 1st floor 100ft^2
  • New flooring
  • New vanity+sink
  • Walls/Ceiling Painted w/ 8ft ceilings

Interior Floor 2

Bedrooms + Hallway 570ft^2

  • Replacement Windows- 7(2.5'x5'), 1(1.5'x5')
  • Walls/Ceiling Painted w/ 8ft ceilings
  • Carpet all including stairs
Full Bath 2nd Floor 76ft^2
  • New Floor
  • New vanity+ sink
  • Replacement Window- 1(2.5'x5')
  • Walls/Ceiling Painted w/ 8ft ceilings

Exterior Work

Siding
  • Front and back vinyl- wash
  • sides are wood- sand and repaint

Garage 1.5 Stall

  • Cement Siding- Stripe and repaint
  • New door + mechanics

Front Porch (wood)

  • Repaint wood flooring

Back Porch (wood)

  • Re-level
  • Rebuild railing
  • Paint flooring and ceiling

Basement

Mold
No A/C unit

If someone who rehabs houses could give me a reasonable maximum offer to stay below that would be much help. I have some interior pictures of the house as well. Thank you for your time and I look forward to getting some advice on this project.

    You really want to come up with a rehab estimate. The goal is to get property at 65% of the Arv - repairs. That leaves 35% to cover holding costs, closing costs, selling commissions, and your profit.

    Assuming an Arv of 105k. 

    105,000 X.65= 68,250

    68250 - repair cost is your offer. Your offer left around $43,000.00 for repairs. Which without seeing the property may be more than enough.

    Medium head icon colorRyan Dossey, Call Porter | http://Callporter.com | IN Agent # RB15001099