Posted by SteveA (FL) on May 22, 2000 at 12:43:29:
Offer $27000
FMV $60000
Acquisition
Expense $4060
Rehab $15000
Holding Costs $3658
Sale Costs $2000
Est. Net $9644 (w/o a Realtor)
Guess you’re right. It’s too skinny (unless of course I could get it for $10K!). That’s why I post here.
Thanks a bunch.
2 Bedroom Homes vs. 3 Bedroom; How Important? - Posted by SteveA (FL)
Posted by SteveA (FL) on May 22, 2000 at 06:31:55:
I’ve heard people preach to never buy a 2 BR home, but I wonder what other’s are doing? I’m ready to make an offer on a another property but the only thing holding me back is it’s listed as a 2 BR. There is a “dining room” (9x9) and a owner-built addition (10x16), either of which could be a 3rd bedroom. The addition is big enough to add a 2nd bath I think but since it was owner-built I’m not sure it’s legal (I’m sure no permit was pulled). It could be fixed by giving the floor better support and adding a couple of windows.
The listing shows 708 sf. I don’t think that includes the addition. I intend on rehabbing it and selling it.
Thanks.
Conventional wisdowm says 3 Bedroom are better…BULL HOCKEY - Posted by David Krulac
Posted by David Krulac on May 23, 2000 at 18:43:25:
I bought a 3 bedroom house and changed into a 2 bedroom house, same sq ft but better flow and room sizes. everyone thought i was crazy but made a nice payday.
More info; Need advice on potential first deal - Posted by SteveA (FL)
Posted by SteveA (FL) on May 22, 2000 at 11:15:51:
Goal: wholesale or retail flip
Wood frame SFH built in 1964
2 BR/1 Bath 708 sq. ft.
Vacant for 6 months
1/2 acre corner lot, fenced.
Think the house was moved there years ago. Sits on
brick piers with a crawl space. N’hood is combo
3 BR brick, 2 BR wood & MH’s on dirt road in fast
growing area. Some nice, some junkers.
Asking $50K
FMV $60K
Rehab $15K
Needs Central heat/air; windows; landscaping;
kitchen cabinets; bath remodel; paint inside & out;
carpet; septic inspection; probably rewire.
Price isn’t my issue; what I’m really concerned about
is finding out this morning that the back porch that
was added is not on a slab and would not pass inspection.
This was going to be one of my selling points for a
possible 3rd BR. I can always have a slab poured
under it or tear it down and add a 3rd BR and another
bath, but what would that do to my cost? Any ideas?
Am I getting in over my head for a first deal? Should
I tear it down and sell it as a 2 BR 1 Bath?
Oh yeah, the addition has been inspected and does
have termites.
Thanks.
Re: 2 Bedroom Homes vs. 3 Bedroom; How Important? - Posted by Bud Branstetter
Posted by Bud Branstetter on May 22, 2000 at 08:42:34:
Generally a 2 bedroom house will take longer to sell than the 3 bedroom. It will sell for about the same price per square foot. Factor in your additional holding cost and check those permits. I’ve also had houses that I didn’t think I could get the additional price for adding a bathroom. Add a closet and make it a bedroom. Slab houses are much harder to add the 2nd bathroom.
Re: 2 Bedroom Homes vs. 3 Bedroom; How Important? - Posted by eric
Posted by eric on May 22, 2000 at 08:41:37:
it depends on the market. In my neighborhood, it is mostly older homes, 1920’s built. Most homes then were 2 bedroom, so with a 3 bedroom, I’m the king, but a 2 bedroom will still sell in this particular area. If it is an area of new growth, and new builder 2000+ square foot homes, then I wouldn’t think an older 2 br would fare so well. Whatever you do, I wouldn’t go on about how it “could be 3rd bedroom!” Realtors do that. I always try to put myself in the mind of a customer, and I know when I am in the market, and I look at an ad for a 3 bedroom, and it’s really a 2 bedroom “plus den” or “with bonus room, could be 3 bedroom” I get so annoyed I move on. It comes off like falseness in advertising, whether you mean it to or not. It is what it is. Advertise and show it as a 2 bed, and then point out possible upgrades only when people are actually in the house with you.
Re: More info; Need advice on potential first deal - Posted by scott in va
Posted by scott in va on May 22, 2000 at 17:05:54:
im very new what is fmv
Remember the goal - Posted by Bud Branstetter
Posted by Bud Branstetter on May 22, 2000 at 12:19:25:
The goal is to make a profit of 10-15K or 20% AFTER all fixup and holding costs.
There’s NO deal here… BTW… - Posted by Scott
Posted by Scott on May 22, 2000 at 11:51:04:
Do you seriously see a deal here? I’m just curious where you think the profit is…
Scott