Re: Help with foreclosure opportunity needed - Posted by Bill K. (AZ)
Posted by Bill K. (AZ) on May 28, 2000 at 14:05:39:
Peering in the window is better than nothing at all. However, that won’t tell you if the water heater works, if the AC/heat work, if any pipes are broken, if there are electrical problems, etc. You might get a good idea about the condition of paint, flooring, kitchen and fixtures. Nonetheless, if I were going to bid on a home I couldn’t examine prior to the sale, I’d make allowance for the replacement of all major systems.
Ron LeGrand has a great course on estimating rehab costs. Here’s a quick rundown on some of the numbers I use in my area (Phoenix). These numbers are based on a 1500sf home.
AC/Heat Unit: $2,000
New Kitchen (including appliances): $2,000
New Flooring: $2,000
Interior/Exterior Paint: $1,500
New Bathroom: $1,000 each bathroom
New Roof: $2,500
Windows/Doors: $100 per pane (depends on size, of course) or door
Landscaping (front AND back): $3,000
Misc. Costs (Electrical/Plumbing): $1,500
So, I would anticipate needing about $16,000 to repair a 1500sf property that I couldn’t inspect prior to purchase. Assuming that your After Repaired Value (ARV) is $48,000, and using Ron’s formula and my repair costs, you should not spend more than $17,600 for this property.
I hope this helps.
Bill K. (AZ)