Posted by ken in sc on April 08, 2004 at 07:15:55:
If you are not used to buying older houses, you may want to make your offer subject to a home inspection so that you can find out what else is wrong or outdated such as wiring and plumbing and then get repair numbers on these items.
Good luck
Ken
Will you buy a house built in 1969? - Posted by Alan
Posted by Alan on April 08, 2004 at 06:21:21:
I am very close to signing a contract with a seller who chooses to sell their property at a discount to an investor rather than fixing it up and sell it using a realtor.
Anyway, the property needs foundation work ($3200.00 bid price) and I am just curious about what other people may think or advise about acquiring a property that is already 35 years old. Are there anything that I need to watch out for?
Sqft : 1289 sq ft
SFH : 3/2/2
ARV : 100K-105K
Sell Price : 75K-78K
Thanks and really appreciate any advise/tips.
Alan
You’re about to get BURNED! - Posted by Layne
Posted by Layne on April 12, 2004 at 12:06:01:
If you’re paying cash (not just getting a free deed) WHAT ARE YOU THINKING? Don’t you know your MAO: ARV x 70% - repairs = MAO
In other words. 100,000 x 70% = 70,000 - 3,200 (repairs) = a MAXIMUM offer of $66,800
If you pay $75k for this deal you’re going to a very expensive seminar…
Oldest prop I ever rehabbed was 1903… - Posted by Marc NJ
Posted by Marc NJ on April 09, 2004 at 24:32:23:
It was not the hardest rehab that I have ever done either. It was my first and I sold it FHA in less than 2 months after it was purchased.
I have done one other that the tax records showed as older, but in my opinion it was not. Tax records showed that it was biult in 1880, but it had block walls in the basement, which were not the black cinder blocks that were used around the turn of the century, they were a form of concrete blocks (white), this was a old victorian that was my hardest rehab ever to date. Either the tax records were wrong or the founation was replaced at one time, which I doubt. It took all of 8-9 months to turn that property but the profit was OK, close to 50K.
IMHO I would avoid , if at all possible , any property older than 1970. This will make your investing , especially if rehabs are what you do, alot easier. But older properties are what I get the most satisfaction, or gratification out of when rehabbing, I personally like victorians and would consider doing more of these if I could. On these properties you will need a skilled craftman, instead of a regular area contractors.
Older houses can be rehabbed but just make sure that you factor in a large percentage for over-runs. In your case the deal seems a bit skinny, so be cautious.
Good Luck,
Marc NJ
90+% of my houses are older. nt. - Posted by jasonrei
Posted by jasonrei on April 08, 2004 at 17:07:27:
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Re: Will you buy a house built in 1969? - Posted by MrWi
Posted by MrWi on April 08, 2004 at 16:27:58:
I bought one that was built in 1929 and had had only 2 owners. It still had the original “monitor top” style refigerator from the early 40’s and the original gas stove from the 30’s in it. Both were in exceptional condition. There were several antique hand tools in the basement and a nice long aluminum ladder. I also found 4 $20 bills in a bank envelope from the 50’s. My partner and I got the house on Monday and had it sold to another investor by Tuesday for 10k. We also sold the fridge and stove and a ringer style washing machine for $1500. So we ended up with $11500 for less than 24 hours work.
Re: Will you buy a house built in 1969? - Posted by Randall
Posted by Randall on April 08, 2004 at 16:20:38:
The real question you should be asking is “Should I pay $75-78k for this house”? If its only worth $100k and it needs 3K in foundation work, then based just on this info you are paying to much. Does the house needs other repirs/cosmetics? It sounds like you could easily have +/- mid $80’s invested. If your intent is to resell it quickly, you are paying way to much. If you plan on holding on to it as a long term rental, then you may be getting it at a small discount. Why are you buying it, and what is your exit strategy? Those are some additional question you should be asking yourself.
Re: Will you buy a house built in 1969? - Posted by Potash
Posted by Potash on April 08, 2004 at 12:07:53:
1969!!! Does it have electricity and indoor plumbing?
I bought one built in '70 - Posted by IA-Jeff
Posted by IA-Jeff on April 08, 2004 at 10:51:14:
1870 that is, and it is solid as a rock. It depends on a lot of factors like how it was built and how it has been cared for since (or neglected). 1969 would be considered a new house by my standards.
Jeff
Re: Will you buy a house built in 1969? - Posted by Matt
Posted by Matt on April 08, 2004 at 10:09:55:
HI Alan,
You’re obviously not from the Northeast, a house built in '69 would be considered newer here. Most of the stuff we come across is built in early 1900’s.
The construction should be good and the plumbing and wiring are already pretty modern if built in '69. Just make sure you do your DD first.
Re: Will you buy a house built in 1969? - Posted by Qinvestor
Posted by Qinvestor on April 08, 2004 at 07:39:15:
Hey Alan,
I agree with ken, and to also ad to his comment make sure you do your numbers. From your offer price, back in from there all your expenses affiliated with this investment. Because if you don’t it could end up costing you money to do this deal.
All the best
-Q