I am under contract for a home at 64k where the ARV should be about 110-130k. The initial ballpark bid from the contractor was looking promising but since seeing the crawlspace I am having second thoughts on going through with this. Here is the inspection report:
What do you guys think?
Looks like a great time if you like remediation! I look for houses like this to purchase as I can usually get a better deal on them. As a contractor, I do not mind doing a full renovation. With a quick look at your inspection, I believe you will spend somewhere between 25 and 45 thousand to rehab this properly. Reach out to your local contractor or subcontractors and put a rehab budget in place. I would start with getting a WDO report, that could be a huge cost if you have active termites. If the numbers are still attractive after you add your renovation costs then go for it. Sometimes these kinds of houses can be a great opportunity to pick up quick equity.
Hi Curtis, thanks for the reply! Definitely will be a lot of work but as you said, can probably get a good deal. Definitely my main concern is the termites and possible bad sewer line (it’s a long ways from the street). They were not able to get into the pipe to do the sewer scope I requested. I will likely try to negotiate a much lower purchase price and if the seller doesn’t go for it I will probably walk away from this one. Thanks again.