Re: bidding a rehab project - Posted by Rusty
Posted by Rusty on February 16, 2002 at 24:08:03:
I’d bid real low on this one if it’s as bad as it sounds because the bank probably knows nobody else will bid on it.
I had one like this where the roof leaked in a foreclosed vacant house and the living room ceiling caved in. Just imagine wet insulation and sheetrock hanging down in the the living room and the musty odors. It scared off everybody but me because I knew I’d get a steal on it. The uglier the damage the better as long as the structural parts of the house are okay. The rest of the house was in decent condition except that the yard was an absolute jungle. I spent 2 days clearing brush with a chainsaw and machete. It was unbelievable! This cured me forever from sweat equity, lol. Now I hire out everything I can.
Anyway, it didn’t cost nearly as much to fix as it looked like it would, and I replaced all the carpet and vinyl flooring, and painted. It looks great now, you’d never know it had a problem. I kept it as a rental property and I’ve had the same tenant since I rehabbed it.
The moral to the story is bid low on the house (you can always come up later), take pictures of the worst parts as someone mentioned in another post and send them in with your low bid. I would go ahead and pay for the inspector just to make sure you aren’t getting something even worse than you think such as foundation or structural problems. The former FHA inspector that I use is only $185 and he’s tough on the houses I have him look at. But that’s what I hire him for.
Best of luck!