Is this too big for a newbie with little cash? - Posted by Heather
Posted by Heather on February 15, 2002 at 15:32:56:
Hi all,
Here’s the deal:
The house is located in a VERY desirable Charlotte, NC neighborhood, average time on market is 72 days. Over all sell average for the neighborhood, once rehabed, is 177,335 and the average for the comps (about 1,200 hla, 2/1) is 164,000,again after rehab.
The house is listed at $104,000 but think I could get it under or at 90,000. Waiting on rehab estimate to come in, but shouldn’t be more than 10,000, if that. Really depends on if the kitchen is gutted and redone, other than that and the roof, it’s mostly cosmetic that I could do, but would need financing to do it.
Here’s what it could use - a privacy fence, deck, landscaping, pull down a tree, refinsh hardwoods, pull out drop down ceiling, new windows, new kitchen, and conversion of a weird room off kithen into a mud/laundry room and other half into an office. And of course other misc…
I really think there is a bunch of $ to be made off this but I am finding it hard to come up with financing. I’m working on a hard money loan right now, but I’m a bit worried about the closing costs and $ to hold it while rehabbing. I can come up with about 10,000, but that’s it and it’s not seasoned.
To make matters worse, my credit score isn’t great, around 620, but most of it is explainable ie - will be followed with docuementation of why it shouldn’t be counted agaist me… In addition, my debt to income is pretty high. I plan on using 50% of the profit to clean up my debt and reinvest the other 50%, if I ever get there!
I’m beginning to think I should maybe drop this deal and find a smaller one.
I’m pretty much open to anything - would anyone want to take me and the house under their wing and make some money? I don’t mind sharing - the knowledge I could learn would be well worth it.
Any advice is much appreciated!!!
Heather