Posted by dealmaker on March 18, 2005 at 08:04:21:
Well purchase will be $24.4K.
ARV should be mid $60-$70K, that’s what the last two comps I did in this area sold for.
The down size is that one of the owners enclosed a full width front porch. And like most folks just ran 2X4s from the old rafters to the new top plate. The result is a very low pitch on this part and there’s some water damage to sheetrock.
My plan is to re-frame the roof (actually have a crew do it to make the two new rooms less “creepy” and eliminate future roof problems caused by dodgy work. Other than the framing the rest will be roofing, replacing about 9 pieces of siding, bunch of trim and a re-sheetrocking the front bedrooms.
I figure it’ll run me from $5K-$12K depending on whether I change the roof pitch or just repair it and put a proper roof on the low pitch.
When done I’ll have a nice 3/2 in a neighborhood that’s a good mix of working class, middle class and retired folks. The one extra this place has is a “view of the lake”.
I seller finance my deals with $2K-$3K down, usually around 8-9%, 30 year amortization, 5 year balloon. Usually takes one ad in the paper to attract enough buyers to pick and choose. So if I end up putting in another $10000, and sell for 67K I’ll have doubled my money, financing $65K gives me cash flow of $477/mo, of which $430 is interest income.
Not too bad, just gotta get going on it.
dealmaker
dealmaker