I would test the market for a week or so if you don’t want to do any repairs. Everyone is looking for a deal. The “blue light special” so to speak. Then you can start on the basics but advertise it as a bargain property. When the buyers call give them the choice. "We are going to do repairs of such and such and when we do it will be $84,900 and $8000 down or you can take it as is for $78,900 with $4,000 down, Something to that effect. We always seem to sell as is because the buyers want a better deal. I would not do anything to this property. Remember while you are spending money on it you are also making payments, paying utilities, cutting the yard, etc. MOve it & get on to the next property. If it were a $150,000 property I would fix it though. Charlie
I’ve a newbie and I have a house that I’ve taken subject to and want to sell on a wrap land contract (per Bronchick). To make this house beautiful in and out would be $15k and headaches, but I could probably get away with $5-6k for paint, rotten wood, fixtures and a kitchen stove.
My question is, should I keep repairs to a minimum when selling seller-financed? Should I advertise it as “needs TLC.” That is, are these buyers going to be tremendously picky if I’m offering them financing or am I shooting myself in the foot by performing only basic repairs? I’m just not very savvy with the rehab end of things.
FYI: I’m into the deal @ $50k and ARV (full rehab) is $75.
First, if this were a rehab that was going to take $15K to fix…you’re in too high. Depending on your own parameters, you probably should have been in somewhere around the mid-30’s lets say. But in at $50K??? Make $15K in repairs and your now in at $65K…and you’ve paid no other cost. $75K as a sales price is going to be mighty slim pickings. So, this is not a rehab…at least not if you want to make any money.
On the other hand, if you owner finance what ever $$$$ you put into this house you’re going to have to get back out. At least that would be my goal. If you put $15K in…it’s unlikely you’ll get $15K out.
So the goal here in my opinion would be to do very little. Frankly…paint isn’t very expensive. And yet paint is a high return type of repair. And it doesn’t take very long to paint. You could probably do it yourself as a penalty for having gotten into this deal too high:)
Stove? I don’t put stoves in if the house doesn’t have one. That would probably depend on your particular market…but I don’t do it. It’s not automatic. Again though…stoves aren’t that much. Been out to Home Depot or Lowes lately?? There’s lots of used places around too.
Fixtures? Don’t know what you’re talking about here…but if you mean faucets, sinks…again…these are inexpensive items.
The bottomline is that most of the things you mentioned aren’t high$$$ items. I wonder where this $6K came from? Certainly a little paint never hurts, some new faucets…what does that cost?
Given your numbers my goal would be to spruce the place up a bit…quickly. Then move it. Don’t spend $15K…don’t spend $6K.