am i learning anything ?
ok I have this place that I'm looking at for my own personal home.
it's REO and listed with an agent, they are asking 197k for it.
its 3br/2ba, 1660 sq ft...theres confusion on that too I've seen an old mls from 2002 stating it was 1800sqft tax roll shows 1660 2br/1 bath
the property is another issue, this broker says it 1.1 ac, the prop survey is showing 4.5ac, an old mls has it as 3.5 ac...so it really needs a survey to be sure. i know for sure it's much more than 1.1ac
anyway, its a modular home, either 1994 or 1999 depending on who you believe. it needs some repair, new air unit for sure (3k), new kitchen (3k)
probably carpet, paint, mostly cosmetic. so i figured 15k for conservative figures. comps in the area are going for about 190-230k in full working order. it's tough to calculate ARV when the surrounding area varies from 80k to 1.5mil
so this is what i calculated.....
195k and its an REO, so 30-40% off or 70% or arv = 136.5k - repairs (new heat/air 3k. carpet 2k , paint 1k , kitchen 3k, 9k not including what I havent seen) I figured bout 15k to be safe.
which brings me to 136.5 (-15k) =121,500 fair value depending on the amount of property could be another 15-30k an acre depending on who it belongs to . I guessed around $115,000 going by the original listing at 156k with 3.5 acres with a pool and maybe minor repairs
am I even in the ballpark here?
next question, if i'm having issues with low credit scores (585) and currently working on repairing all that so conventional mortgage is not much of an option and someone were to do an HML, buy and repair the house and offer it as a lease w/purchase 6mo-1yr later for 10k over what they have invested home+repairs does it sound like it would be a win-win situation?