Posted by Ray(OH) on November 02, 1998 at 05:59:48:
Hi Scott,
I am located in the cleveland area of Ohio. This property is on the east side of town, in a decent part of a rough area. To give you an idea of the area, my brother and I have a policy of not “driving the neighborhood” or “inspecting properties” past 5:00 pm. It has been vacant since mid summer and I would consider it’s current condition as unrentable. A few months ago I would have considered it uninhabitable, however, I have recently been inside an occupied house that was in worse condition.
As for the Realtor, they deal in “wholesale” properties for investors.
As for the property being a “Real Fixer”, our objective with the duplex was to rehab it if we couldn’t flip it to another investor in a week. Our rehab plan consisted of:
new roof, siding, asphalt over existing concrete driveway,storm windows, doors, 2 kitchens, 2 baths, 2 furnaces, 2 water heaters, glass block windows in the basement, patch and paint walls, re-glaze existing windows, carpet and vinyl the floors, new electrical system, new light fixtures/switches/plugs/cieling fans, some new landscaping and a for sale sign. In other words, a “Real Fixer”
Feel free to e-mail me if you have any more questions.
Ray
Posted by Ray(OH) on November 01, 1998 at 19:10:46:
My brother and I would like to thank all of you who have helped us along the way with answers and advice. Especially JPiper and Rob(FL) for their help with our most recent dilemma.(our post down the page re:legal/ethical question)
Here’s how it went:
10/16-called about ad in paper, the agent said it was sold so I asked about others and she gave me an address. I checked comps and they looked pretty good so I drove by the house and the comps that evening. I made an appointment to see inside the next morning.
10/17-We did a walk through around noon and made an offer that afternoon.
10/18-The agent said we had a counter-offer and we accepted.
10/21-We had gotten several estimates (complete rehab, plus individual estimates for siding, roof, electric, etc.)over the past few days and decided to try and flip it because we felt we could make a good profit and still leave a good bit on the back end, so we ran an ad over the weekend, which got a better result than we had expected.
10/28-We closed, buying our first property.
10/30-We accepted an offer from a rehabber for $8,000 more than we paid for it! (scheduled to close in 21 days or less)
Asking price-$17,000
Purchase price$14,000
Our asking price on the flip $25,000
Initial offer from investor$18,000
Accepted offer from same investor $22,000
Is this a good flip? I hope so, we think it is.
After rehab value = high 70’s low 80’s (rehab is 30-35k)
Again, Thanks Everybody
Can someone fill me in on what area of the country are you living in to be able to buy an investment property for that low? I live in the Northwest and do not see anything ever for that low, under $25K.