200+ year old home - 1st Deal - Posted by Warren


#1

Posted by Kristin on December 26, 1998 at 14:02:46:

Here’s my 2 cents:
It sounds as if this is a very specialized deal, and you should consider very carefully whether this is the first project you should take on.
Rural areas generally have a much longer holding time, and the repairs to a house of that age can be astronomical.
My suggestion would be to do ALL of your research before you get tied up in this deal. Even if you are flipping it, and not doing the repairs, you have to consider both the cost of the renovations, and the level of experience a contractor would have to possess in order to do those renovations properly before you can determine where and to whom you should shop the contract.
Also, the comps and holding time in that area may be very difficult to determine if the area is “very rural” as you said in your post.
None of this is meant to discourage you… just make sure you do all of your research before you take the deal. It’s the best way to make sure you come out on the plus side.
I wish you the best of luck, whichever decision you make. I’ve always wanted to renovate a house that age for my family and myself, and I’m sure there are other purchasers out there who feel the same way about the older homes.
Kristin


#2

200+ year old home - 1st Deal - Posted by Warren

Posted by Warren on December 24, 1998 at 17:03:08:

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.

Thanks for any comments / thoughts you may have.

Merry Christmas & A Happy & Prosperous New Year!

Warren