Is this worth what my mind is telling me?
Sorry if it sounds insane but forgive me I am a newbie to the whole "real estate world". Ugghhh.... This real estate stuff has mind going 100mph! lol..
Ok so, I am going to give you the numbers and some info about the home because I am in need of some advice.
This home is an early 1900 home. It is listed as a 1950, but it also states that it is questionable and up to the buyer to figure this out. I contacted the National Department of Archives and History and the man I spoke with said from the looks of it on google and the architectural design he would say that it is around a 1900-1920's home.
My reason for giving you this info is, if this home can be listed historic than the price of this home after renovations could be MUCH higher than the number I am going to give you.
Just to be safe and not sorry, I am going to give you my numbers without it being nationally accredited as historic.
This home is 1950sqft. home listed as a 4bd 1ba, but after renovations would be a 3 bd 2ba.
Asking Price: $29,000
Renovations: $70,000
ARV: $130,000 (this is a low end number for a cushion barrier. I believe after repairs this home will sell for much more)
The renovations would include: an extended and upgraded kitchen, combine 2 of the rooms to make one big master suite with walk in closet and and a master bathroom suite, adding a bathroom, uncovering and refinishing all of the original hardwood floors throughout the entire home, add on back screened in porch with an additional open deck off to the side, new fencing and landscaping, a new roof and some modernized upgrading to the additional rooms.
Using that my MAO (maximum allowable offer) would be: $21,000
Now forgive me for thinking like a rookie but I feel like I would be taking advantage of the seller to ask them to lower the price to $21,000.... Seeing that the potential of this home would be worth so much after renovations. Not only is this home very close to the historic part of downtown Summerville, the neighborhood directly across the street has higher end homes that are in the $290k-$460k range. Not saying that this home would be that just giving you an idea of the area.
I also would like to know if someone could enlighten me on the "capitol gain" process and how that works. I am unfamiliar with the aspects of this and would really like to educate myself with this before I take on anything.
Thank you all in advance for your time and efforts,
Erica Clark