Thoughts on Possible BRRR House?
Looking at getting my first flip under my belt. This one is a FNMA foreclosure in the Wichita Falls, TX Market.
It reeks of pet urine, which I don't mind cleaning up, but curious of how much additional costs that would factor in. I've accounted for that in my paint figure.
Bank has essentially countered my offer (of $68K with no closing costs and $100 Earnest) with an offer of $68K and $750 EM, so curious on thoughts before I pull the trigger (response due tomorrow afternoon). I will be doing a walkthrough with a GC to see if there's anything big I am missing and of course I would be getting a professional inspection too.
I intend to do a good "rental quality" rehab on this one (it is near a military base with lots of tenant pools and good rents, est rent: $1000/mo, I will refi to get my cash out, then likely sell in a year to avoid taxing it as active income, and instead as LT capital gains.
It's a 3/2 and 1400 Sq Ft. ARV of 110K
Estimated Repairs (mostly estimated via Homewyse):
Carpet in BR and vinyl laminate in living area: 5000
Drywall (has paneling in 3 bedrooms, would replace): 1500
Paint: 5000
Landscaping and Fence: 1000
Garage (fix drywalling and install door openers): 1000
Kitchen (would install new cabinets and better lighting): 4000
Appliances: 2000
Total Repair: 19,500
I know I'm at 80% (not 70% rule) but 70% is hard to find here in WF unless you get something that needs complete gutting. The bones appear to be good on this home and will just need some help with cat pee with a combination of a few tactics I found on the forums here. Will be contracting out the work due to my time commitments.
Thoughts? Anyone see anything big I've missed? Thanks in advance for your help!