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.

    Create Lasting Wealth Through Real Estate

    Join the millions of people achieving financial freedom through the power of real estate investing

    Start here