Rich Dad to be, Poor Dad to be! - Posted by Rich
Posted by Rich on December 05, 1998 at 07:24:11:
Help! I’m a ‘father to be’ who’s trying to create a real estate nest egg for his future family. About 3 months ago I found a nice old home that is in a great location (historic district - and among other more expensive homes) but is in need of a fair amount of repair. The current owners are a non-profit group that typically does rehab for low income housing. This property was donated to them. They began demolition of some of the rear of the property that had been added on over the years. The rear had been a mishmash of architectural styles and looked like hell. So they started to tear it off. Unfortunately, they ran out of money to finish domolition and start the rehab, so they let it sit, for the last year. The city has threatened them with taking the property (they have a court order ready) and tearing it down, and turning it into a parklet. I found out about the property, and contacted the owners. They have an appraisal of $42,500 ‘as is’. I offered them $10,000 for it. About 3 months have passed, and the owners just called me to say they would except my offer. But I need to act fast. The city has called off the dogs, for now, but want me to finish the domolition and do the outside work to get it looking acceptable ASAP. I have contacted a demolition company, and they will complete the demolition for $2,000 and they can start this coming Tuesday. I have also contacted a friend who’s a contractor who said he can replace the roof, and windows, put on new siding, soffit, facia, spouting, shutters, build a new front entrance, for $24,000 and can start next Wednesday. I have my attorney doing a title search and he said he should have it by Monday, so, if it passes muster, I can close on the property on Tuesday. The property needs another $10,000 to $15,000 on the inside to be complete. It was originally built around 1860, and has some great features, including pocket doors, a super tin ceiling in the dining room, hardwood floors, and a good location - in the historic district (tax breaks) among homes in the $100,000 and up range. It is zoned residential/office, so it could make an ideal professional office building, for an accountant, doctor, lawyer, etc. It is about 3200 sq. ft. on 2 floors. Now, here’s the rub. I’ve been holding $10,000 for the closing on another property I’m about to purchase and don’t have another $10,000 to buy ‘this old house’. Where’s Bob Villa when you need him? Anyway, if anyone has any suggestions or ideas, I have until Monday to come up with something. I think if I could come up with the $10k, my bank might finance the rehab. If anyone wants to see some photos, of the property, as it is, and the proposed renovation, feel free to email me. Thanks to one and all, and have a happy holiday. - Rich