I have a couple of deals going at the time in the Kitsap County area, but there's one in particular I'm trying to get sold ASAP. The original owner is anxious to sell and wants to know we'll close soon.
The owner had the house assessed at a $160,000. However, I told him the best I could do was $130,000 and he accepted. All the other houses in the neighborhood, this size, are selling for around $250,000. If party C got it at $140,000, after putting in $30,000 of rehab into it, they can turn this home around for atleast $240,000, probably more. $240,000 x 70% - $30,000 = $138,000. That's just shy of a 20% profit, at $46,000. I always like to speak in "worst-case" scenarios so that I know there's a guaranteed profit.
Let me know if this is a deal you'd take or not, and why?
Single family home. Upper level built 1968, basement built 1992.
3 bed/2 bath
.16 acre/1256 sqftGreat view over Bremerton
New laminate flooring in kitchen and entry ways
New tile flooring in upper level bathrooms
Propane fireplace on both floors
Backyard deck on upper level
Access to outside from basement
The driveway is shared with another home so you are only able to fit 2 cars at most, but one will block the other. There is dry rotting around most of the house in the lower panels. The roof is up to code says the owner, but the gutters in the back are hanging.
The rest of the house is going to need work too. Primarily cosmetic other than the dry rotting, and the propane tank that is exposed in the front yard. Everything is up to code, the man used to work for the state housing committee for 30+ years. So it's just old and needs a good remodel to my understanding.
If the numbers you're posting are correct, it would seem to be a good deal. How sure are you on the $240k comp price and the $30k rehab? Curious why the seller just doesn't list it for, say, $200k on the MLS? Or he has listed it with no offers, or simply needs to close immediately?
Let us know how this deal goes -good luck!
Here is the only question you haven't provided an answer to. How fast can you blow this thing out realistically as far as getting the work done?