First Deal Rehab

5 Replies

Hello BP!

I believe I have found my first opportunity right across the street from the apartment I'm renting. This house seems to be neglected as I hardly ever see it occupied by renters. Many houses near by are split into multi family but the average single family in the area is $120,000. Location is excellent for both markets.

This may be jumping the gun a bit as I have not talked to the owner, but I know it is almost always vacant and it obviously needs renovations but it has huge potential.  

Given the right deal would you guys try to turn this into a residential multifamily or flip it?

Any input is appreciated! 

Thanks,

Curtis Hummel

@Curtis Hummel that is tough to answer without knowing more about the house and about you.  If you can do the rehab I would see what the market is asking for....more multifamily or single.  Also, depends on how easy it is to change it inside.  If it is a single I would keep it that way, since it will most likely be easier to sell.  If you don't have the cash, I would see if wholesaling it would work.  Hope this helps.

Hi @Curtis Hummel . Welcome to B.P. 


I would have to firstly agree with @Carolina E. It will be initially tough to determine without additional information such as rental/sale comps, acquisition and rehab costs, ect. Perhaps the way to start off is to get in touch with home owner and build a little rapport to determine his level of motivation to sell. Ask about the history of the property, rents, past issues, ect. In the meantime, you may be able to do a little fact finding of your own looking up the public records of the property and performing some preliminary analysis using the B.P. Calculators. Just a thought. Good luck.

***Side Note: If rehabbing, you may not have to look further than the rehabber of the blue house next door to get some estimates, maybe even a referral discount.***

Thanks for the input guys! I took a look at the house today and the inside was not terrible the kitchen needed serious work though. I found out the house was bought for 50k back in 2008 and from what I see it hasn't had any improvements.  All the work mostly would need to be done to the outside. I found out who owns it just need to get his number somehow. What would you guys offer knowing that the house needs work but could be worth 110k min. If it was brought up to the condition of the house next door.

@Carolina E. I would be able to do most of the renovation with my dad we are both engineers and very skilled with our hands. I thought about wholesaling at first but then I remembered Ohio wants you to have a license I believe in order to sell homes.

Originally posted by @Curtis Hummel :

@Carolina E. I would be able to do most of the renovation with my dad we are both engineers and very skilled with our hands. I thought about wholesaling at first but then I remembered Ohio wants you to have a license I believe in order to sell homes.

Not that NOT having a license has stopped most people :).

If you are going to try wholesaling (license not withstanding) you need to get comps and solid rehab estimates from 3rd party contractors to start with.

If you are buying and flipping; still need to confirm comps, build and price a specific scope of work (including paying your Dad?) and then add a fudge factor and what return you would be happy with. 

Now you know how much to offer!

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