If Beneficial “bought it” in Feb '99 for $102k, Isn’t Beneficial the seller? I suspect they foreclosed and that’s what their debt was. Or, the debt might have been more, but that’s what their bid appraisal was. If that’s the case, $102k would be my first offer.
I can’t say anything about prices or market conditions where you are. You mentioned one nearby house, on less than half the land, selling for $180. But you also say that it’s in an estate area with listings from $225k to $2mil. If that’s the case, the lot might be worth $160k. Wealthy people who want a particular area will often pay that for a home and then tear it down and build something expensive.
It sounds like repairs might run $15-20k before your through, plus the road improvement adding $???.
You ought to get a better handle on the after repairs value, so study this one thoroughly before you jump in.
Ran across a Bank owned property. 2,000 sq.ft,3/2 & 1/2
on 8.63 acres, built in 1978 with the MOST beautiful
view here in the foothills of the Sierra’s by Sacramento.
Listed with a realtor @$160,000, because it needs work.
In checking at the county records, it was tax appraised
1/99 for $182,000, in further checking I located a
property on the same road minus the view with a 10yr
old 3/2 on 3acres that sold last year at $180,000 but
was probably in good shape. Houses are real tight in
this area right now. The house is trashed, needs new
kitchen cabinets, tile counters, all new floor coverings,
and possibly a new roof, saw some minor water stains on
vaulted open beam ceiling in LR, needs all new decks.
Went under the house foundation is solid and prodding
the base flooring seemed solid, there is some wood rot
on the eaves, the present roof is metal, most in this
area are tile. Beneficial Finacial bought it for $102,000
in February 99, why? I have no idea! The area is 3 miles
from town in a 5 acre estate area with most listings going
from 225k to 2M. The road gets pretty bad going up and
should be paved and cost shared by all owners, I would
think. Have I lost my mind or does this sound like a
possible flip? rehab? or a royal pain!! HELP, please
I need advise. And what kind of deal/finacial type would
I offer the bank? Thanks ahead for any info.you can give.
Jean