I am looking to see if this is a good deal and how much a full rehab would cost for that size of house. Assume some foundation, electrical, plumbing included. Maybe tearing off carport and redoing.
I came across an old 2/1 house that needs a complete remodel & gut. I don't know if it's a good deal, seems to be, but would like some professional advice. I have not purchased an investment property yet and have some knowledge of construction, but not to this level. This is in San Marcos, Tx...a very strong market currently and hard to find any deals. I'm looking for properties with good cash flow $3-500 range. If paying cash (which I have), it seems to cashflow well, but costing me about 80-90K. If I take out 50K loan/30yr cash flows OK. If I take out 80K loan/30yr about breaks even, make a little if I manage. If I sell, maybe make 10-15K.
Pics & Details here: https://drive.google.com/drive/folders/0B1X_mx6jt3...
2BR/1BA - Could add a bath with the remodel, but not really add an extra room, unless you added to back of carport, like it is.
built in 1951
no garage, but carport/room which probably needs to be torn off and redone.
asking $65,000...but would offer 30-40K
ARV should be around 100-120K
Class C type neighborhood
any advice would be appreciated.
Was that you that used the BP tool on that property? If so, great job! Everyone else just asks what folks think. Well, there's a tool to help you with that. Anyway, I'm not a tool superstar yet, but I've seen a couple of webinars and read some blogs and the consensus seems to be (or I'm just getting this from the same people, who knows lol) that you want at least a 12% cash on cash ROI and this one is 5%, so I'd say it's not a good deal. But that's just my opinion... Good luck!
Thank you @Jody Schnurrenberger I've heard that many times about not doing the estimate, before just asking. I tried to do as much as I could before asking any questions. It seems to only cashflow good if I pay everything in cash, but then the ROI is low.
I am a licensed broker, knowledgeable, and well versed in the San Marcos market, as I have been deeply rooted in it for the past 10 years... please feel free to touch base at anytime, should you desire to discuss this option, and/or any others, further. Take care!
Brandin Huber, Broker
Huber & Co. Real Estate
@Brandin Huber I would like to touch base sometime and discuss the SM market and the ones around here. I want to invest, and would like my first one to be fairly close to home and to earn a decent amount of cashflow. I am leaning toward multi-family, as the numbers would be better.
Join the Largest Real Estate Investing Community
Basic membership is free, forever.