Posted by B.L.Renfrow on June 07, 2000 at 09:57:14:
If you are confident about your rehab figure, carrying costs should run you around $1050 or so per month, using the figures you supplied. If you have to hold for more than a few months, the profit starts to disappear pretty quickly.
And, that doesn’t take into account any advertising expenses, closing costs or broker commissions if you have to list it for sale.
If you are looking at it as a personal residence, it might make sense. I still think it’s tight for an investment property, though. Of course, other things to consider are what the neighborhood is like, and how the market is in your area. If things are such that you feel you could move it quickly, it might be do-able. I am not trying to be discouraging, but especially for a newbie, I suspect better deals are available with a little more searching.
Posted by tony pardo on June 06, 2000 at 22:07:22:
I have found a property valued at approx $110,000. asking $85,000 needs $10,000 in improvements to get full price. I can get 100% financing at 11%, or pay it off with my savings. taxes are $2500 a year and then there is insurance, of course.(I mention this because I am concerned about the carrying costs).
Is this a deal? I’m concerned that I am convincing myself that there is money in the deal because it’s my first.
could I flip it? should I repair and retail it?
should I finance or pay it off? I need input, please help.
Posted by B.L.Renfrow on June 06, 2000 at 22:30:22:
On the surface, likely not much of a deal…but it depends upon what you intend to do with it. $10k in repairs is pretty significant for your first deal, especially when you consider that a lot of rehab/repair estimates have a way of inflating pretty quickly. What is the nature of the repairs needed? Is this a FSBO or is it listed through a broker? What is the seller’s motivation? Will the seller finance any or all of the purchase price? Are there existing liens on the property? What is the property actually worth by comps?
Posted by tony pardo on June 06, 2000 at 22:45:09:
It’s VA listed at $65000 I have been told by 3 separate realtors that the property will sell for at least $80000, I will bid $85000. The repair work consists of cutting up and burrying a pool which popped out of the ground(left empty in florida). Also some kitchen and bath issues. I’m sure that $10000 is a good estimate. now what do you think?.. Tony
Tony,
Is this property in Fort Lauderdale in North Andrews Terrace neighborhood? I am having hard time finding properties, such a seller’s market on the east side of Fort Lauderdale/Pompano Beach. I am mainly interested in multi-units and bargains are so hard to find…Good luck!