All Forum Posts by: Curtis H.

Hi Kevin,

It screams newbie analysis because it is :-)

I am pretty upfront I have no clue what I am doing. I've always been up front in all my posts, and someone finally said shut up and do something and stop asking questions. So I did since I agreed with the logic.

Man realtors make a lot of money! When I do start really investing my wife is getting licensed. That is just too much money for my taste to sell a house. I understand there is work involved, but it's hard to convince me its $30K worth of work. You better grab a damn paint bucket and pull some weeds for $30K. Ha ha.

So I will offer him a low amount for sure. But if HE sold through a realtor, he would be forced to upgrade to a much higher standard than if I moved in, AND he has one hell of a commission fee to pay on top of that. So if I convince him I save him $30K in repairs and $30K in commission fee, that's $60K right there that is justifiable to anyone to get a price break.

So I'm going to make an offer, but it will be under $400K. And that will be contingent upon what repairs are ultimately found by an inspector if he agrees. He wants to leave, he's over living in the city, and the feeling I get is he's selling one way or another within the next year. Some investor will surely overpay for this area though, hence me wanting to get it under contract first and be the one to sell it to them if they are dying to overpay anyway.

Thanks for the replies guys.

I think I'm more emotionally invested in the money I spent to get the phone to ring than the property and want to make an offer. Why not. Feels like a waste to have a seller with a free and clear home and WANTING to move somewhere else and me just walk away without an offer.

But in general I'm hearing that under $400K would be the general rule. He's gonna bust out his shotgun when I give him that number.

I had a feeling that was coming :-)

So do you suggest me getting an inspector in there to estimate rehab costs? I'm naturally worried of someone snaking a potential deal so I'm cautious about doing that without anything under contract. I can't get it under contract because I don't know what to offer. And I don't know what to offer because I don't know what the repairs will cost.

I paid $400 to get this call, so I want to capitalize if there is anything that can be done. I personally can get away with adding a bathroom and upgrading kitchen appliances. I will then do the pretty stuff over a two year period. Those two things sound like a $30K job at minimum. So I guess if I wanted to live in it I could offer a little more than an investor would have to. Seeing as its free and clear, I'm thinking of creative ways to get into the home with little out of pocket up front. Although I can get financed for about $415K, the down payment will be murder.

Well I'm using this as an education if I decide not to live in it myself. The numbers I throw out there could be way off.

So I guess my direct questions would be...

1) What do you think repair costs would be based on these pics? Aaron you said this is not a deal at $480K, so I'm guessing you think this needs a ton of repairs? If it could sell for $615K after all is said and done, I'm guessing you think it needs a lot.

2) If I were trying to live in it myself, and fix up over 2 years and resale, what would you suggest I offer. My first thought was $400K flat. See what he says. He isn't in a hurry but can easily be persuaded to sell a free and clear house if the money was dangled in his face.

3) As a rehabber, what would YOU pay in this situation for this house? He is not asking any price right now. He just thinks its worth $500K as it looks. I'll offer $400K, he'll say no, and I'll show him all the repairs needed to sell through a realtor and how long it would take, and he may rethink it. He already took a $75K loan out on the house to fix it up, and only got a new roof and electrical and blew through the rest. He owes $68K still. That's it.

Thanks guys!

Hey guys, based on these pics of the 1300 sq ft home built in 1940, what would you guess the repairs would be? Keep in mind I will have to add a bathroom.

It has a new roof and new electrical. That's it. Furnace heater with floor vents, galvanized plumbing. Old kitchen. All things I can live with while slowly fixing up the place.

Great size lot, great neighborhood. Homes fixed up to the max similar sizes are selling for anywhere from $550K in June, to $615K recently, but those homes were a little bigger by about 300 sq ft. He thinks its worth $500K as it sits, and I still think that's a little high for the work needed, but I could be wrong.

At $500K it's still about $60K out of my price range to be honest, but I could get it under contract for say $480K and flip it to a rehabber for say $500K. Even with $65K in rehab costs, if they sell for $615K that's a nice spread. Thoughts?

Hey guys, based on these pics of the 1300 sq ft home built in 1940, what would you guess the repairs would be? Keep in mind I will have to add a bathroom.

It has a new roof and new electrical. That's it. Furnace heater with floor vents, galvanized plumbing. Old as dirt kitchen. All things I can live with while slowly fixing up the place.

Great size lot, great neighborhood. Homes fixed up to the max similar sizes are selling for anywhere from $550K in June, to $615K recently, but those homes were a little bigger by about 300 sq ft. He thinks its worth $500K as it sits, and I still think that's a little high for the work needed, but I could be wrong.

At $500K it's still out of my price range to be honest, but I could get it under contract for say $480K and flip it to a rehabber for say $500K. Even with $65K in rehab costs, if they sell for $615K that's a nice spread. Thoughts?

Agentpro247.com is where I got my list from.

Michael,

So you think I should get it under contract, THEN bring in the estimate/repair person? I just don't see how I would know how much to lock it up for, plus he isn't realistic about repair costs so he's asking too much.

So what do you guys think about the above scenario? I want to call in an appraiser/rehabber to show me how to estimate repairs, but naturally I don't need anyone with connections to other investors to catch wind of the property either. RIght now the situation is only known by me and the owner.

Yes I was able to find a list of 65+ owners. Boy they like to talk. But I need the practice so it's all good.