The line between low ball and ridiculous
So I'm looking at properties and find a single family converted to a 2-unit. If I've interpreted the county's tax website correctly, it was sold in 2011 for $13k. Looks like it's been rehabed and the listing price is $64k. I need to confirm but I think the rents total $1100 per month, taxes are $932 per year, mortgage at $243 per month, and I'm estimating expenses at $517 per month including cap ex and maint. It cash flows better than a couple of different tri-plexes I was looking at for $40k less.
I don't have experience estimating the cost of a remodel so I don't have a feel for how much they have in it. I suppose I could go take a look at it and then go to Home Depot and estimate materials.
Or, I could forget about trying to figure out how much they have in it and just make an offer. Would $50k be ridiculous?
~Jerry