First Offer and Looking for Feedback on My Numbers
Excited to be making my first offer on a SFH (intention is to buy & hold). I'd appreciate any feedback that ya'll can offer on my analysis.
Property is in a A- area. House is listed at $65k. Median comparables in the area (similar bed/bath and sq ft) have sold around $76k. This house lacks an attached garage, so I assume that it dings the value a little bit. So let's say ARV is $70,000 if the house were all dressed up and live-in ready.
House certainly needs work on it. Its carpet has all been removed and the kitchen needs rehab as well. The bathrooms are outdated but usable for the purpose of renting and there are some things that have already been quoted (electric work + some concrete) that the listing agent has quoted at $3.1k in repairs.
So for rehab I have the following estimates:
Kitchen (cabinets, countertop, etc): $6.5k
Floor (1,500 sq ft): $5k
Appliances: $3.5k
Paint Interior: $2.5k
Electric/Concrete: $3.1k
Miscellaneous (fixtures, etc) $3.5k
Rehab total: $24,100
Safety Net (+10%): $26,510
ARV less Rehab: ~$43,400
x 70%
= $30,380 offer price
Keeping in mind that I am using ultra conservative numbers, do the rehabs and estimates seem ok or too far-fetched? The property should easily rent for $900-$1100 in the area and I am not afraid to start out with a near 'insulting' low-ball offer just to feel out the seller.
Given the above info, what would you recommend to be the 'highest' price you'd be willing to go to (keeping in-mind my rehab estimates might be off the mark).
Thanks!