All Forum Posts by: Matthew Koch

@George W.

I appreciate the info and as I have talked to the city of Jerome the lot is subdividable and it does have enough space for 3 parcels on this almost full acre lot and I've talked to a couple of contractors one in particular that had told me they can do a home for 120 a square foot but he is all packed with his projects right now and would not want to do it. It would all connect to City water and sewer for all three units they would be brand new and preferably 1500 square foot for 3 bedroom 2 bath of course the house that is currently on the lot will have to be taken down first and if the foundation is able to be used and that's already half the battle right there or part of it.

I'm trying to do my homework and see what the costs are to tear down an existing home in Jerome Idaho but also figuring out how much it's going to be to be rebuilt with three other houses on this particular slots on an almost acre of land and if there's somebody out there that is able to do it for around a hundred bucks a square foot for 1500 square foot 3-bedroom 2-bath house times 3 for 3 parcels on one lot that I personally believe they will be reappraised for 150 a square foot. so where is the calculator to analyze how much those costs are for the demolition of the current house where the cost is and who to talk to for building new within this area also the appraiser who I can get a confirmation on the after repair value sort of speak like where is the new construction build calculator.

@Ben Feder I absolutely believe that it's possible to obtain a property of that quality as that is kind of the end goal for a lot of people and the model that you're talking about is a turnkey property so whether it's an apartment complex and multi-family or single family homes once the person is done being proactive and bringing up the rent up to market value or renovating and remodeling the single-family home to where it is livable rentable the only hurdle you'd have to jump over is the price of what you would want to pay for it and depending on the person who selling it you could still potentially good a good deal if it fits your personal numbers and your financial situation. Would love to you and hope you find what you're looking for

@weston Johnson

I think I have a huge deal in the making but i am trying to expend all angles and options or resources before giving up on this one and maybe we can chat about it and see what I can do for you and see what you can do for me. Hope to hear from ya. 

So an Update to this information is that I have done my homework and contacted the right people that I need to find out if this particular parcel can be subdivided into three and yes it can be. I found out as a ballpark estimate from somebody in Jerome was also a contractor and Builder that quoted me for 1500 square foot house to be built about $120,000 brand new and the home will be taken down for the 20,000 again that's ballpark conservative rough estimate and it be purchased at 80000. The person that is going to take that land and then develop it after that will be spending around maybe 400k and then find out that there are similar products or models within the area is that is a prime location to resell it even after it's been built brand new for 200k and the whole parcel could go for anywhere between 600k and 650k for that comparable analysis around the area. I'm excited as I have already made that first step and making the offer and once it is accepted I will be able to contact three other people that I have in mind that could buy it from me and finish it to completion and they would make a $50,000 to $80,000 profit. Of course when I did these estimates they are highball estimates of the actual true dollar cost might be considerably less and the prophet potentially could be more after everything is all said and done. I personally believe this would be that scenario where it is a whole tail type of deal because finding the the Builder or GC that can absolutely build those houses for that hundred and twenty or $150,000 price point to have even more money made on the end has that product a three-bedroom two-bath could easily go for 200 or $220,000 in that area per parcel times 3! So wish me luck and hopefully I can close on this deal within a month or two weeks as I thoroughly and genuinely excited see this through!

If a manufactured home is built with less materials but same square footage and amenities like same bathrooms and bedrooms but the value of a manufactured home Is a 100 bucks a square foot but the single family home Is at 125 or 200 a square foot then how is it ok or allowed to compare the 2 for determining a properties worth? What am I missing or not seeing? The amount of materials and cost that goes into creating a sfr such as foundation is sometimes stronger or frame work is laid out better or more intricately to hold and support more of the house other than a Manufactured home?

@john thedford

In my opinion for my particular state in Idaho, it is my understanding that I can go out to a customer who is in need of selling their house and I can see what price works for them to make ends meet, or Just get rid of the property or sometimes it's a bit above asking price and they sign a purchase and sale agreement that states that myself or my partner would

Be willing to buy the house out said property with am option for that assignment to be given to someone else. When that agreement is signed and turned into escrow and the two or 3 parties are there then the equity interests I the property is assigned first position to me and then I assign it to my partner as a end buyer and that end buyer pays me a cost which is normally very nominal from 1000 bucks to 10000 deepening on person and deal and if the seller is happy with their price and the end buyer still makes that number Work whom is buying it from me then it's fine and win for everyone. As I've already done my homework and contacted the Idaho real estate commission's office I can do this myself that this is very much legal and that there's nothing to worry about.

 well that's actually what I'm working on today and calling around and getting numbers and estimates on what I can actually do with the property and I personally believe that I could get this property for 80k and it would most likely have to go that route of starting over from scratch and even if it is 220 to build new then that's only 300k into the property then it would be at market value as its literally across from the school. That is also something I'm trying to figure out if this land as it is a .97 acre lot then if the possibility of it being subdivided is doable then yes another 200 into it for another new home and then the entire thing sold for 500 to 550 or individually at 250 to 275. I know and understand those are kind of high estimates for conservative numbers but as I'm trying to see what route to take for this to be considered a deal it doesn't always have to be a whole run deal but that's why I'm doing my homework and try and what routes work best for this property. I'm almost positive if someone was to take the route of the rehab because of the problems with the lead paint the Asbestos and the black mold it would be up near a 110k and is just easier anf more cost effective to start over new which was basically new construction anyways.

I appreciate the input and I still got to do more due diligence on this and find out what the final result could actually be

This home is unsafe for living in for asbestos and black mold in the bedrooms with exposed wiring in the basement that could be a possible 2 bedrooms. It seems that the whole rehab process could take somewhere between 80 to 110k if the roof was new and replaced with an entire gut job with new bathroom anf kitchen ( which the the most expensive of those 2 items surprisingly) and the list price is already 195k! In my personal opinion I do not believe that someone would cut costs and want to rehab this place to bandaid the problem of leaks on the took which goes down into the walls and light fixtures, plus an unfished bathroom-like area that's exposed sewer drain and plumbing, someone couldn't just temp fix it to make it livable because I believe its unsafe the air quality is bad when the furnace kicks on it sets off smoke alarms so they leave it off..... My thoughts are if the house can be dozed over then thats a blparl of 20k and then new construction starts at 200k and if I can figure out if a parcel can go from not being able to subdivided to becoming a subdivided parcel for 2 houses on this almost full 1 acre lot, which btw is 0.97 acres, then that makes 220k to remove and build new for first parcel and add another house for another 200k? Then sell the whole thing for 550k? I think that is a deal but hey what do I know. I am only trying to see all the avenues for what makes this potential deal a home run with the numbers I have now and ill have more for sure and accurate on point estimates later mext week. 

anyways. Anyone in Jerome Idaho for dealing with demolition work and or new construction and or knows more about the zoning info then hit me up and lets figure this out together. Thanks for the time and look forward to hearing back from ya all.

So I'm getting my feet wet I'm taking action and I went out and checked out this property tonight. The listing shows a 5 bedroom 1 bath house. And the two people that are living there with their mom are telling me all of this stuff that are wrong with the house and it red flags in my mind for the excuse of not being able to leave out of this house I asked them directly what happens if their mother happens to sell the house where do they go they didn't have a straight answer for me and I ask that pertinent question to try to make a win-win type of situation in regards to being able to connect the dots with someone else it might be able to help them out and getting into a place of course that depends on their current situation and financial status and all of that as well as jobs in other factors. But the brother or the son rather gave me a literal laundry list of things that needs to be done to the house such as the roof has leaked into the attic and then cause structural damage behind the walls also that there used to be a oil tank where are there currently is a concrete slab next to the house that was used to heat the house I hooked up to the furnace but now it's only a gas furnace but that doesn't even work and they're worried about turning it on because it does leak and you can't really open up the windows to vent it out except opening the door itself and getting out any fumes that would stay in the house. The main level itself does look fairly good but to the untrained eye as myself as green as I am what is assume that it is a good cover up and that there is possibly mold Behind the Walls there. As the house was built in 1955 according to the sun there is lead paint and asbestos in the Attic and as I was to witness myself there is no real closing of the attic it's just an open hole in the side of the house where there is Storage stuff inside that hole. There is actual mold in the bedroom on the main level as well in the corner where this lady sleeps every night.  The actual backyard is overrun with a lot of weeds and trees that were planted there 20 something years ago apple trees pine trees Quaking Aspen's among other major plants that's back in the day probably looked very nice but now all I see is a complete landscaping job where in my own personal opinion all of the trees would be taken out the entire lot tilled up and recited for grass or possibly there is a chance of an another lot Oar House to be built back there if the ground perks and if it's zoned to allow that other house on it such as a mother in-law suite. And as I burn through 195 podcast episodes I've learned a whole bunch of what can be done to a house and what cannot be done to a house and I would still like to know the opinions of BP community in the direction that I'm thinking this house could go. I definitely will admit that I don't know how to run or work the numbers for arv but I do have an idea as per what  should be done to the house and I think in my own opinion one option is to have the house completely gutted not only to the studs but also the floors to be taken up and removed and checking the foundation for other structural issues and if the foundation cannot be fixed or taken care of then it might be a potential fill in style demo  and the whole house be taken down and the new house be built and then a structural secondary parcel could maybe be on this one lot.....  I go with that route of bulldozing the whole house to the ground because looking at the other option of getting the house and fixing the structural issues in the basement completely redoing the plumbing completely redoing the sewage completely redoing the electrical it would technically be a brand new house but if the egress windows were put down in the basement and they were finished an insulated well in my personal opinion then it would actually be an official 5 bedroom 1 bath house with a potential of adding a second bathroom as one was started and plumbed in the basement but never finished then if only there was another house in the area that was comparable to it so it can be sold for higher than the 195 k after its fixed up again and relandscaped..... 

anyways. Any help and advice is appreciated. House is 1236 n lincoln ave Jerome Idaho 83301.

Thank you for reading my long rant.