Advice needed on big rehab property - Posted by Ed IL

Posted by Ed IL on May 12, 1999 at 08:37:15:

Thanks for responding Carol. “Everything” includes all that you mentioned. All that is up right now is the framing for the walls and doors along with a second floor with the same. That’s it. I’ve got a rough estimate of 40-50k for finishing the job. I guess I was just wondering what current rehabbers out their were willing to conquer. Thanks for the info.

Advice needed on big rehab property - Posted by Ed IL

Posted by Ed IL on May 11, 1999 at 01:08:52:

Hello all,

Came across a 1920’s built 2400 sq ft 2 story house in the very beggining of it’s rehab. The thing needs a lot of work. The current owners bought obviously to rehab it and are now giving it all up. Currently they have gutted the inside down to the frame, and have just put up new walls and most inside door frames and flooring but that’s it. This one needs everthing else inside and out. I’m hoping to make an offer and then flip to a rehabber but I’m not sure you rehabbers would take on such a huge project. Would you? Let me give you the numbers. I won’t pay more than 70-75k. The house will sell for 150-160k. If I make 5K I’ll be happy. So tell me is it worth it?

Thanks a bunch

Re: Advice needed on big rehab property - Posted by Ray

Posted by Ray on May 12, 1999 at 07:58:56:

Plug in your own numbers, if you do a simultaneous close or sell your position, take out your buy/hold/sell costs.
If we take title to a property we will try to make more money, but 5k is better than nok.
Hope this helps.
after rehab value = 160k
rehab costs = 50k???
buy/hold/sell costs = 5k??? (yours)
buy/hold/sell costs = 12??? (rehabber’s)
rehabber’s profit = 25k???
your profit = 5k
offer price = ???

Re: Advice needed on big rehab property - Posted by CarolFL

Posted by CarolFL on May 12, 1999 at 06:35:36:

One point you did not include is your estimate of rehab costs. When you say 'everything" are we talking plumbing and electric? or sheetrock, paint and floor covering?

If you want to flip to rehabbers, you need to be working on your list of YOUR buyers, and what THEIR criteria are for profit on these projects.

A little more info is needed, but frankly, if they have cleaned it out properly and not ruined the character of the place, they have done you a service!