Ok. Well I have an update on this deal or should I say, not so much...
The agent was actually a great help. He pointed out the potential in it but as I mentioned I am a BP enthusiast (he is as well), he showed all the issues with the house. So let's dive into those shall we?
But first, the Pro's:
Foundation is solid. No cracks to note.
Framing is solid. House is standing without any leans, sags or other shape issues.
Half the windows have been replaced already. (Existing windows are single pane)
Stairs need no work. Next to no creaks, no sagging or bowing when stepped/bounced on.
Paved driveway is in good condition. Could use a sealer but what driveway couldn't.
Comes with a Jacuzzi tub.
Wiring is all copper (YES!).
Plumbing was updated 2 years ago.
Potential for main floor rental and basement rental (separate entrances exist already)
Has a natural gas fireplace.
Yeah! The cons. There are several so don't hold your breath while you read.
All flooring on the main floor needs to be redone (thank you Mastiff's).
Kitchen cabinetry is dated to the 60's so an update needs to be in place.
Floor plan is beyond closed. The wall between the kitchen and living area would have to be removed to allow more breathing room.
Walls are plaster based so painting would be an issue. I would need a primer to convert to latex based.
Front yard had 2 big skid-steer tracks in them. Needs new SOD.
Backyard has a weird half split thing which creates a 3 foot drop hazard. Even the backyard out.
On the side of the house there is a Juliet balcony that is a safety hazard. To be ripped down.
Hot water heater leaked for a time. Needs to be replaced and the concrete floor resurfaced.
Heavy musk smell mixed with cat/dog smell. (Thankfully no carpet in house at all)
Exterior siding is made from asbestos material. Asbestos specialists would need to be used for removal and cleanup.
Exterior would need new siding.
No HVAC system. (Good news is that the install would be fairly easy due to lots of room for duct work)
Roof needs to be replaced. Causing a plaster peel issue on main floor
The property is listed for $299.900. The agent gave me comp info on other properties sold in the area over the past year. 95% of the properties sold for more than $400,000 with buyers going 20 to 30k over asking price
The property is a 10 minute walk to downtown via city nature path. It is also a 15 minute walk to the largest park in the city where most events occur. It is located on a major bus route with the terminal a 15 minute walk away. It is located on a semi quiet street meaning it gets some traffic but not a major artery.
After witnessing the property in person, it is a lot of work. I definitely feel that a rehab budget of 30K would be blown quickly.
Potential exit strategies are
Rehab to a point and resell. (HVAC, roof and paint is a good start to increase sell price in my opinion).
Full Rehab and duplex the property for dual rental income. Could attract 1800+ for main floor and 1100+ for basement
Yeah. Those are my thoughts on this property. Everyone please comment in and let me know what you think yourself. This is my first go at this. About 60% of the work I could do myself but 40% would have to be sub-contracted out (asbestos, HVAC and roof).
Please leave your thoughts. Even if its against doing it. I want to know why you would not do this deal.
