Need help analyzing this property....I'm new
Hi everyone,
There is a local property for sale through HUD that I looked at today and I'm trying to find out if it is worth it or not. I'm interested in flipping right now and not renting (that will be later) There are 2 houses on an acre lot. The neighborhood is decent. The houses are 3/1 and 2/1. One looks like it needs to be completely tore down and rebuilt completely and the other one is being used as a crack shack (literally....we saw debris). The owner is asking $450k for it. The property is not zoned as multi family only R-A-1. The city is allowing it to be sub-letted; 1 water meter, 2 electric and 2 gas meters. Nice sized yards, in ground pool in back of one house and beautiful view of the mountains. Could be rented for $1600/mo and $1400/mo. Not sure of the ARV since it's 2 properties on 1 lot. For a SFR, combining all beds and baths ARV would be $390k. For 2 separate properties, probably $450k - $500k. Am I way off? Should I run? Should we offer 50% - 60% ARV because of the extensive rehab? He is MOTIVATED. Wants to move out of the country and have it sold in 30 days. It's been on the market for 18 days. Thank you!!!!