Need Advice - Found Possible Rehab - Posted by Charles

import · July 26, 2003, 3:52am

Posted by Ken - DC on July 26, 2003 at 18:47:04:

I suggest going in lower than $27K and putting it under contract then wholesale it to another investor/rehabber to deal with the hassles. Check out the articles section on wholesaling. There are some great resent ones. That way, you can get a quick payday with no hassles!

import · July 26, 2003, 3:52am

Posted by Charles on July 26, 2003 at 03:52:10:

I found a rehab from a REO that is in pretty bad shape. It’s about 1200 sq ft and on a block crawl space foundation. The termites have gotten the best of the floor joists and plywood covering in half of the house. There are also a couple of leaks in the roof. The 2 car garage is about to fall down. The REO is getting in the $27K price range for the property. He started at $39K. The lot is appraised at $25K. This didn’t seem like a hard money approach since I guessed the repairs would be around $35000. If the house were in great condition, it would appraise for $65K.

Any advice appreciated!!!

import · July 27, 2003, 6:42pm

Re: I gotta go with Ronald on this one… - Posted by Christen

Posted by Christen on July 27, 2003 at 18:42:20:

My husband and I are rehabbers, my father in law is a contractor, my husband is a contractor and a foreman for a land developer and this one is too much for us.
Just my 2 cents
christen

import · July 26, 2003, 10:14am

Re: Need Advice - Found Possible Rehab - Posted by Arthur

Posted by Arthur on July 26, 2003 at 10:14:26:

Sounds to me like you would need to demolish the entire structure. If it costs $5k to demolish a house, i’d pay $12-15k for this property (a couple k more if the foundations are ok).

If you really want it, go in much lower than they are asking.

import · July 26, 2003, 7:59am

my views - Posted by Ronald * Starr(in No CA)

Posted by Ronald * Starr(in No CA) on July 26, 2003 at 07:59:46:

Charles---------------------

You don’t give us a clue as to your skills, experience, abilities, etc. So it is hard to advise you.

My view: if you are not a contractor and have worked on a lot of properties like this, forget it.

Look at the numbers: Fix up + asking price =/> market value. Now, you’re saying well, “it’s less.” Nope. What about closing costs? What about holding costs while you fix it up? What about 15% contingency for cost overruns?

Besides, you don’t know how to do a rehab, right?

Forget it. Why would you even consider this turkey?

Good InvestingRon STarr****