Posted by learning on February 09, 2006 at 11:34:08:
Thanks for the reply! Well it’s like this I would like to assign a contract for a property in the Frankford area of Philadelphia which I think is a fair deal for a rehabber.
ARV = 49k
SF = 1216
Repairs = (not at all the best at this so I went high) 20k
Asking = 15k
"THAT WAS A COUPLE WEEKS (3) AGO AND AFTER CHECKING THINGS AGAIN, HERE I ARRIVE:
I spoke with a REMAX realtor who informed that the property in that area totally fixed up would bring around 80 - 90k, he will furnish the comps for me tomorrow. I have looked this up again and found the following:
1123 Fillmore $130,000
4743 Penn $90,000
4934 Hawthorne $75,000
Without high comps we have:
4724 Mulberry $73,500
2133 Anchor $62,500
So we’re dealing with a property that can come in btw 70 - 90k ARV…
As a possible first deal I am learning alot and from the post out here that is the only way to get seasoned in this business. I am trying to stick this out and so far got a estimate of repairs from a local remodeler/landscaper advertising in the Inquirer. Funny a couple of you asked me did I look at the look inside the place (not!) and according to some courses (I almost hold as “law”), I factored for the worst with 20k.
The advise given to me was the property is on a 1/2 acre of land and I should spend 4 - 5k knock it down and contact builders in the area who happen to be revitilizing the area about a 1/2 mile away. It is possible that three row homes can be placed there and used as rentals.
I was informed by a neighbor that a women on the same block not to long ago (maybe months, I didn’t pay attention to the house on the block to get the address) sold her house and received a little over 90k
Now with that all said (sorry about the very long post, day has gone like that) can someone…anyone give me some advise on what my look good in this situation creatively without the “Forget about it” factor.
Thanks for any response.
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