[Calc Review] What am I missing?

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*This link comes directly from our calculators, based on information input by the member who posted.


We checked this place out yesterday. I am especially curious what out-of-town investors would do with this place if it caught their eye. We are also really curious what the general consensus is of the numbers. Are we too far off? 


Supposedly investors have checked this place out and all have given a hard no. Finding comparables for this house was hard, as there are no houses with this many rooms unless they're outside of town and on ranches - very different. 

For the ARV I went with the average house prices in the neighborhood. For the repair estimates, I overestimated the heck out everything that needed done. Major appliances appeared brand new.

The numbers appear to work, so what are we missing? Looking forward to your input!

Updated over 1 year ago

Here is the google doc link of pictures. I focused on damage rather than layout.

Updated over 1 year ago

https://drive.google.com/file/d/10V_r1Uj-zvEHVAoapkf-PlK7HPPy8gty/view?usp=sharing

That’s a lot of bedrooms. Is there a college nearby or anything where it might make sense to rent by the room? Maybe not enough bathrooms though. What’s the square footage? How is the room size (are there actually too many small rooms)?

Originally posted by @Jason Leavitt :

That’s a lot of bedrooms. Is there a college nearby or anything where it might make sense to rent by the room? Maybe not enough bathrooms though. What’s the square footage? How is the room size (are there actually too many small rooms)?

 It IS a lot of bedrooms! I believe it would be better to combine a few of the rooms to make it a 4 bedroom with 2 extravegantly sized rooms, or mains. The total square footage is 4,064. 

I did the numbers on it being a rental as well, but it did not make sense with all the repairs. I took some pictures of the damage and rooms and I am uploading them to google docs that I intend share so you can all get a better idea.

With that many bedrooms and cars I look at the mini garage and driveway. I wonder how many large families want to move in?   Most appraisers will focus on the gross living area as basis for valuation using $/sf as basis. 6, 7, 8 bed rooms matter less.  In fact, more expensive estates happens to have fewer bedrooms.  I suggest you add beautification with landscape, trees, flowers. The interior paint cost seems to be on the lower side using two tone modern color. Flooring, recessed lights, new kitchen cabinets, modern baths add more value to the property.  These dated 1970 homes look dark and dull. I will focus on converting a br to office or library. Good luck.

Sam Shueh

Wow, that is a lot of square footage. That will give you options but I guess it just depends on what the demand in your market is as to what would be the best use. I’d be cautious around the issue of not having good comps. 

Originally posted by @Jason Leavitt :

Wow, that is a lot of square footage. That will give you options but I guess it just depends on what the demand in your market is as to what would be the best use. I’d be cautious around the issue of not having good comps. 

For comps, I suppose I could use what I plan to fix ( a 4 or 3 bedroom house with 2 bathrooms vs 6/2), maybe even add a bathroom to a combined room since they would be quite large. There is  lots of possibilities. 

As far as market goes, it's more based on boom and bust. Right now coal is busting, and oil booming. I have few doubts about it selling in the end :)

Well, after talking to the bank to try to secure financing, they wanted 50k in collateral to cover the cost of construction. We don't have that, so moving on.

The good news is that I was pretty much spot on for estimating the cost of repairs, so I got that going for me.

The other bad news was that I undervalued the ARV by about 30k. 🤯

So close yet so far away.