Rehabs - Posted by Shenesa
Posted by Shenesa on May 23, 2000 at 13:25:55:
I just had my first experience of viewing a house that needs TOTAL rehab. Here is the situation. The women lives out of town, about 4 hrs away from me. I met her today at 1 o’clock to view the home. She has not been inside the home for about 4 years and I think she was a little surprised as well. She purchased the house 5 years ago, which was fire damaged. Her initial plan was to rehab the building and then rent it out, however, that did not pan out. She put it under contract with a realtor and it did not move. Anyway, she called me on a letter I sent out to owners of boarded up homes in my area. She is asking 5K for the house. I think that is a little steep for the amount of WORK that needs to be done. The house is a 2family, 3brs and 1 ba. on each floor, 24’116’ sq ft. no appliances, no heating system, needs new roof, new furnace, heaters, new windows, new ba. and kitchen, floors, ceiling, and walls needs sheet rocking. She wants to get rid of it but I believe I will only offer her $1k.
The estimate cost of repairs that the house needs will be about 20-25k. The comps in the area are 50-60k, will rent for $500-$550 a month. Taxes are $1251, no liens on house and owned free/clear. I plan on calling a few of the investors in my data base tonight and asking about there criteria for rehabs.
Your suggestions are welcomed. Like I said, this is my first total rehab,possible, deal.