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Hi all,
I came across a listing on craigslist today and called the owner. Its a gutted home listed for $32,500. The owner bought it as a foreclosure and was prepared to do the rehab, but cut himself too thin on the 2 other deals that he is working on and claims not to have the funds to take on the project. Not sure whether or not this is true, but its what he told me. He just put it on craigslist yesterday and is not planning to put it on the MLS. He said yesterday he was going to sell it, today he kind of wants to keep it. (Sales strategy perhaps...)
Its a long and narrow home, with a bit of a tricky layout. 900 square feet and 2 bedrooms. The owner estimates it will take about $40k to rehab the home and it needs new HVAC systems, new furnace, duct work and a new electrical panel. I will obviously need to verify the costs.
From what I could find in comps, the cheapest house that has sold recently in the neighborhood is $140k. Other comps from last week:
1 block away $150,100
1 block the other way $196,000
2 blocks away $216,000
This is obviously a big rehab and something I would need to partner on. I was thinking of contacting "my mentor" (http://www.thefastlanetomillions.com/general-business-discussion/24403-how-do-i-find-mentor.html) and seeing if he may be interested in partnering on the deal.
I have to leave town on Wed and won't be back until Saturday (work trip that is unavoidable), but my thought was to drive by tomorrow, then call my potential partner in the afternoon and get his take.
I'm hesitant to lock it into contract without having a better idea of the costs, but I don't have anyone I trust to do that yet, so I'd be relying on my partner. I'm totally fine giving up most of the deal to the partner as I alluded to in my earlier post, as this might be a good chance to work with him on something and bring in a little money as well.
Anything I'm not thinking about? What am I missing?
I came across a listing on craigslist today and called the owner. Its a gutted home listed for $32,500. The owner bought it as a foreclosure and was prepared to do the rehab, but cut himself too thin on the 2 other deals that he is working on and claims not to have the funds to take on the project. Not sure whether or not this is true, but its what he told me. He just put it on craigslist yesterday and is not planning to put it on the MLS. He said yesterday he was going to sell it, today he kind of wants to keep it. (Sales strategy perhaps...)
Its a long and narrow home, with a bit of a tricky layout. 900 square feet and 2 bedrooms. The owner estimates it will take about $40k to rehab the home and it needs new HVAC systems, new furnace, duct work and a new electrical panel. I will obviously need to verify the costs.
From what I could find in comps, the cheapest house that has sold recently in the neighborhood is $140k. Other comps from last week:
1 block away $150,100
1 block the other way $196,000
2 blocks away $216,000
This is obviously a big rehab and something I would need to partner on. I was thinking of contacting "my mentor" (http://www.thefastlanetomillions.com/general-business-discussion/24403-how-do-i-find-mentor.html) and seeing if he may be interested in partnering on the deal.
I have to leave town on Wed and won't be back until Saturday (work trip that is unavoidable), but my thought was to drive by tomorrow, then call my potential partner in the afternoon and get his take.
I'm hesitant to lock it into contract without having a better idea of the costs, but I don't have anyone I trust to do that yet, so I'd be relying on my partner. I'm totally fine giving up most of the deal to the partner as I alluded to in my earlier post, as this might be a good chance to work with him on something and bring in a little money as well.
Anything I'm not thinking about? What am I missing?
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