First property analysis - first step before approaching an agent

12 Replies

Hello everyone, 

I found a property that seems good to me. This is my first time attempting to do anything real estate related. So I was hoping to share with all of you and gain some advice and perspective on whether this is a promising flip. I have the trulia link as well, not sure if I’m allowed to do that. But I copied the link in the bottom for anyone wanted to take a look. 

I'm considering doing the "70% rule" with this flip. I know it's not a set rule, but it seems to fit with this home. The median price ARV for this home I believe is 105-130 (I looked at the surrounding homes) and I'm thinking 25-30k (as an estimate, to be on the safe side) in repairs.

https://www.trulia.com/p/ma/springfield/16-emily-st-springfield-ma-01109--2000301088

Thank you all for your advice! 

yea thats a good bet...   the house is 1912, maybe check out the big ticket items --- foundation, floorboards, Hvac, windows, roof .     make sure wood is not rotting near tub or toilet.   

What are you basing your repair estimate off of?  Have you taken any bids from contractors on similar jobs and compared item cost?  If you haven't you should probably do that to get a more accurate grasp of costs in your market.  

Here I can get tile laid for prices that are untouchable in some markets.  

@Jeremy England I have not done any bids yet. I was thinking this step would be done around the inspection. Have them come in at the same time and get an estimate around that time. Is that how it would go? Or do you have another recommendation? Thanks. 

Originally posted by @Teynna Garcia :

@Jeremy England I have not done any bids yet. I was thinking this step would be done around the inspection. Have them come in at the same time and get an estimate around that time. Is that how it would go? Or do you have another recommendation? Thanks. 

 My advice would be get some specific numbers on some type of specific specs.  

Find a floor man and ask him how much he charges for tile, wood, carpet.  Then put that into a spread sheet

Find an ac company and tell them what you are doing and give them the sf of the place, theyll come back and give you some specific numbers on units, labor, options . Put it in your spread sheet.  

Rinse, repeat with as many contractors as you can get to give you some prices.  

Look at home depot, lowes etc and find materials costs.  

That is if you plan on being your own gc.  Otherwise you should contact some gc's and talk generalities with them.  Theyll all say "it depends" but they can also tell you what is unrealistic.  You take a 1920's house to one and say "I want the whole thing redone" and I guarantee you none of them would ever say "20000 sounds about right"  

I was a builder for about 5 years precrash and I used to tell people the base model started at about 75 bucks per sf under roof and we go up from there.  

Originally posted by @Teynna Garcia :

@Jeremy England great! Thank you so much for those details. I truly appreciate it. 

 You really should probably read j Scott’s book on estimating rehab costs to give you a better understanding 

@Teynna Garcia there's a lot to consider in a property that old... $25k-$30k would probabaly be about right if the house was 30 years old. With a place 100+ years, you have to consider different things, electrical, plumbing, foundation, HVAC, etc.... That $30k could very easily turn into $60k. Have a contractor walk through the property with you, they will be able to see these things.