Posted by JPiper on December 26, 1998 at 13:28:15:
First, you haven’t given sufficient information to know whether there is any deal here. Without knowing details like the value of the property, and the cost of the fixup, how you propose to finance all this, and what your final exit plan is, there is absolutely no way to know.
But a few general comments. People do fix up older houses. It’s not easy. Doing one job opens up 10 more jobs on an older house. So it is very difficult to estimate the cost of rehab.
Generally people who buy older homes like this are interested in the historic detail. This means that you need to pay attention to this historic detail yourself. This raises the cost of rehab, along with the time for rehab.
Naturally 2 bedrooms is a disadvantage, but this doesn’t mean it can’t be done, it just needs to be factored into the decision making process.
Rural areas COULD slow the sale down…but then again in many parts of the country people are moving from the city to the country-like settings, especially if they can still access a city area for employment purposes. Again, knowing the area and the comps will help with this decision.
In summary, your question is not answerable. You need to do your homework. And you need to look at yourself to see whether you have the abilities at this point in time to carry out a project of this type.
By the way, if I saw a home of this age with 100 amp service I would be pleased…I’ve bought them with 60 amp service.
Posted by Warren on December 26, 1998 at 13:05:22:
I am reposting this message for assistance as my original post was on Christmas Eve when most folks were probably not online. Any responses would be appreciated greatly.
I have come upon a 200 year old home on 3 acres in a VERY rural area of Southern New Hampshire that is for sale by the daughter of a woman that passed away over the summer. She is attempting to sell the house on her own and ran an ad looking for $71,000. When I spoke to her earlier today, she said she would go as low as $55,00. (I have not been able to get any comps as of yet to see if this 55k is a good deal or not.)
Potential problem #1
The house has not been updated at all - still has 100 amp service.
Potential problem #2
The house has only 2 bedrooms. I understand through posts I have seen here that it is not wise to deal with homes with less than 3 bedrooms for sake of an easier resale.
I would be interested in flipping this house. Are there a lot of people out there that specialize in buying antique homes with the idea of restoring them?
If so, would you think that assuming I pick this home up for the 55k the seller spoke of today there would be a decent profit in it for me if I were to flip it to a restorer? Also, does it generally take longer to flip properties in rural areas than in more developed areas?
I understand that there are no definite answers to these questions, but any thoughts anyone has would be most appreciated. As you can tell by the questions, I am a newbie looking to complete my first deal.
Posted by phil fernandez on December 26, 1998 at 13:40:39:
Warren,
There is no way of telling you if this is a good deal or not. I am not from your area. What is the fair market value of this property. You have to determine this yourself to know if you have a deal here or not. Do not rely on what realtors tell you. You need to know your market like the back of your hand. Maybe $55,000 is too high. Just because the seller says she will come down from $71,000 to $55,000 doesn’t mean you have a deal here.