Posted by Rick Hall on April 28, 2008 at 09:20:22:
Quick insight. 140K sales price 35k into rehab. That 35 will probably end up being 50k (trust me) closing costs, insurance, many other holding costs, I would not pay over 65k for this property as you stated it. That is a major rehab, they always suprise you. I just picked one up for 25k and rehabbed it to the tune of 45k (my original plan was 25k rehab) made a few improvements additionally to my planned rehab to make the place more user friendly, listed it at 112,900 and have it under contract for 107,500. I would not jump into such a project unless there is a lot of room for error and a lot of profit on the table to make it worth the risk.
Hope this helps, not to discourage!
Rick
Posted by Katherine on April 20, 2008 at 20:03:21:
Hi
I am a newbie to real estate investing. The area I live in in Canada is a sellers market at the moment.
Problems - Seller’s market, no tax sales - everyone has paid their taxes for this year according to the city and municipalities I"ve talked to and as far as I know - no foreclosures either.
Question - What is the best way to find a house in a market such as this one? I have looked at several and think a good one to start with should need cosmetic work and clean up?
it is ALWAYS time to buy… - Posted by David Krulac
Posted by David Krulac on April 21, 2008 at 11:10:15:
good market, bad market, buyers market or sellers market, it is always a good time to buy.
To a person with a hammer everything looks like a nail.
Tax sales aren’t the only game in town. diversify your search. There are always divorces, always deaths, always illness, always foreclosures. there are always empty houses, there are always people who would like to sell who don’t have their property listed for sale. Look for unkept houses, long grass, neglect, and peeling paint. Look for empty houses and find the owner and ask if they want to sell.
Re: it is ALWAYS time to buy… - Posted by Katherine
Posted by Katherine on April 21, 2008 at 13:15:22:
David - thank you for your response. I found a house today that needs A LOT of work, but its back yard faces the golf course! The house is an eyesore compared to all the other homes on the street. The seller is asking 93,500. I will probably have to gut the entire thing, change the floor plan, put on new siding and give the house some badly needed curb appeal as well as put on new shingles or tin… just not sure how much all of this will cost.
Rehabbing isn’t exactly the best place to start if you’re new to investing. Find a rehabber to wholesale it to, take a little profit and move on. That’s my advice.
Hey, If you want to know the details on the buyer and seller market you can check out this website The Canadian Home. They have a mortgage calculator so that you can check out in case you lack money. And also they provide a detailed description of the property.