Posted by Heather -Tx on September 03, 2003 at 22:08:28:
NT
Rehab Question… - Posted by Real Investor
Posted by Real Investor on September 03, 2003 at 09:49:58:
Wanted to make a bid on a property that would resell for $250K- 300K, problems are as follows though:
Septic System is caved in and not working.
Pool is a fish pond and needs to be removed.
Two small holes in roof.
Driveway needs to be paved - currently is gravel.
About two dumpsters worth of trash.
We wanted to put a cash offer of $100K cont. on final inspection. Est. repairs at about $100K (leaving a pretty conservative amt. for profit).
Can anyone tell me the cost est. for the above items?
Thanks,
Re: Rehab Question… - Posted by Heather -Tx
Posted by Heather -Tx on September 03, 2003 at 22:05:11:
I haven’t dealt with the pull issue myself before… but I have heard some investors just fill them with dirt. Seems like that would be a much cheaper solution ?
100K sounds WAY high… but you have seen the home and I Haven’t lol I can have a fire damaged home redone totally for around 40K, and this seems like less ? Septics here in my parts of Texas run around 5K or so for the new ones also … but alas that may not be where you are.
Heather
Re: Rehab Question… - Posted by michaela-ATL
Posted by michaela-ATL on September 03, 2003 at 12:37:39:
I’ve never had to deal with septic tanks or pools, but 100k in rehab seems pretty steep. I’m sure there’re a lot of other things, that you have included in this, than what you mention in your post.
Michaela
Re: Rehab Question… - Posted by Ken (in Iowa)
Posted by Ken (in Iowa) on September 03, 2003 at 12:04:40:
Dear Real,
If someone did volunteer some estimates on the repairs you mentioned, would you accept them? Honestly, think about the questions you asked… one example: “Driveway needs to be paved.” Is 10 feet wide and 30 feet long, or is it 30 feet wide and 250 feet long? How could anyone give you any kind of guess on this repair? Even if you specify the dimensions of the driveway, concrete and labor costs vary widely around the country. Is the existing driveway level, or would it need to be extensively regraded? Etc., etc.
The only way to answer this question (and your others as well) is for you to either find a general contractor or bring in your own specialty contractors (roofer, concrete man, etc.) and get some quotes.
I don’t mean to sound confrontational, but you’ve got to realize that there aren’t any shortcuts to this. This is serious stuff, and you need to know how to get your ducks in a row.
Good luck and good investing,
Ken (in Iowa)