Hello Bp fam!
ok so I'm going to dive into this. I have been researching real estate for the past few months and have yet to get my feet wet. I'm in the process of saving money to make a decent downpayment on a duplex or multi-family to house-hack. Any who I recently came across a house that was involved in a massive house fire and requires about 175k worth of repair. The ARV is estimated at over 400k. If I had the money I would've loved to keep for myself and the location literally could not be more perfect. So my question is should I try my hand to whole sale this house? i've yet to contact the homeowners and I'm pretty sure they would have insurance but if not would while selling this be a smart idea? I looked the house up online and the fire happened about 5 months ago.
Thank you all in advance!!!!
@Zaina Rocke go for it! If the homeowners don't want to rebuild, they might be able to keep the insurance money so anything else you give them would just be extra. If you think it needs about $200,000 in repairs you will probably need to be in the house on your A to B agreement for at most, around $80,000 and preferably probably around $50,000. This would give you the ability to sell your contract on it for less than $100,000 to an end buyer. If the feedback you get from potential buyers is too high, then you'll need to go for a pricing reduction or reduce your potential margin to meet their need for lower pricing. I hope it helps and good luck!
First step is to contact the owner. If you never get in touch with them then you can't buy it. Then all the calculations were just a waste of time.
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