So today I searched the MLS and found a few properties of interest, after calling and Talking to Gina (realtor) we decided on a cute place on the south end of town. The asking price was $160,000.00 when it was listed in dec. of 2006. Yea, thats right it's been on the market for one whole year... The asking price now is $140,000.00, thats OK but not profitable for resale. We need to work the seller down to less then $115,000.00 to make it a good project.
ARV (after repair value) is about $230,000.00 if done the right way. this will require the whole floor to be replaced, including the sub floor. All drywall must go, as lead based paint was once used in the house. The stucco has to go, replaced with siding. and all gutters replaced. Two of the bed rooms would be combined to create a master bed and bath suite. The current bath needs to be remodeled, and an additional bath added on the main floor.
Thats a lot of work, and the numbers only work if I can get things done for around $50,000.00 to $60,000.00. this would leave enough room to cover holding costs, and bills during repair. and the place would need take less then 8 mos. to rehab. It also would need to sell with in 4 months or be refi'ed out of hard money, and rented.
Contractors are Called... I need to contact Smith-Rothchild to find out about the hard money to buy it and rehab.
