Posted by David TN on July 01, 2003 at 11:41:54:
Actually - 10% of 65,000 is 6,500. 90% of 65,000 is 58,500.
too good to be true? - Posted by Matt
Posted by Matt on July 01, 2003 at 09:57:30:
Im going to go look at a bank owned house in a couple days. Its listed at $29,000. Houses on this street have been rehabbed and sold quite often. Seems like the average price goes for over $65,000 on a rehabbed house. I looked up the estimated home value on the house. It came up with a 40% increase to about $118,000. There`s no way this house can sell at $118,000. The previous owner paid $85,000 2 years ago. My best judgement so far is that the house needs some repair…possibly up to $10,000, depending if I do it myself. Is this a worthwhile investment?
Who could possibly know? - Posted by Troy M
Posted by Troy M on July 01, 2003 at 11:43:45:
>>Seems like the average price goes for over $65,000 on a rehabbed house.
‘Seems like’ aint good enough for me. Get some comps and look at the facts.
>>My best judgement so far is that the house needs some repair…possibly up to $10,000, depending if I do it myself.
How about taking a look at the inside before you decide it only needs $10k of work. Does the house have mold? settlement? working CA/H? wood destroying insects? wood rot? structural problems? other problems?
“Seems like” you have some work to do before you decide if this is too good to be true. I’ve spent as much as $35k on rehabs. Get some hard numbers on resale value, repairs and figure out your exit strategy. Then maybe someone can give you a real answer.
Good Luck,
TroyM
Troy M
Re: too good to be true? - Posted by Sean
Posted by Sean on July 01, 2003 at 10:18:15:
Ok, so you have a house worth 65, needing 10k of work, and the bank is asking 30?
I would say this is a no brainer, probably can lock it up for 25k or less, do the repair and get a nice payday.
I personally would do this one, no question.
Re: too good to be true? - Posted by dirkd
Posted by dirkd on July 01, 2003 at 10:05:58:
29k purchase, 10k fix up. 3k misc holding = 42k in
65k min sell - 10% commission etc = 55k - 42 = 13k min profit.
sounds good to me.
how 'bout you?
Re: too good to be true? - Posted by Matt
Posted by Matt on July 01, 2003 at 11:06:02:
My only problem so far…I don`t know what the inside looks like yet…$10,000 is based on reasonable expectations…the could be totally vandalized on the inside for all I know.
Re: too good to be true? - Posted by Dan-Fl
Posted by Dan-Fl on July 01, 2003 at 11:25:00:
10% of 65k is 58,500
Re: too good to be true? - Posted by RichV(FL)
Posted by RichV(FL) on July 01, 2003 at 10:21:19:
dirkd,
13k min. profit.
Sounds like a winner to me.
Regards,
RichV(FL)
Re: too good to be true? - Posted by Sean
Posted by Sean on July 01, 2003 at 11:42:15:
Well then you haven’t provided the proper information. If its a vacant house, go climb in… well over 50% of the time you can walk into an REO…
If not, then if its listed with an agent get an appointment to get inside with any agent on the multilist. Or call the lister up directly… most local REO’s here are listed with the same handful of folks, and the really experienced listing agents put combo locks on their REO’s so you can just get the combo and get in, and don’t need to even meet with the agent.
Only safe way to offer on a house that you haven’t seen the inside of, is to assume the inside is a total shell. RARELY in my experience is this the case, go look in the windows or walk through the property. Provided you aren’t doing it at night time with a flashlight, no one is really going to care if you’re in there.
Re: too good to be true? - Posted by David TN
Posted by David TN on July 01, 2003 at 11:39:05:
I agree with Sean. Just make sure your repair figure is correct. If they are not, you could end up in a mess, however, if 10,000 is the correct figure, then is sounds like you have a very good deal.
Re: too good to be true? - Posted by Tom-FL
Posted by Tom-FL on July 01, 2003 at 23:12:58:
Must be the “new math”