House #2 – Figuring out my offer

Scott Costello All, Blog 2 Comments

HBMLG_2679624So this week I want to make an offer on house #2.  I will call this the Well House.  I’m going to go through how I’m figuring my offer price and if anyone wants to chime in that would be great as well.

Asking Price: 345,000
Des: SOLD AS IS. LARGE HOME. MASONRY AND FRAME CONSTRUCTED. HW FLOORS. FRESHLY PAINTED THROUGHOUT. OVERSIZED 2 CAR GARAGE. PROPANE GAS FOR COOKING ONLY. GREAT INVESTMENT FOR HANDYMAN. REPLACEMENT WINDOWS THROUGHOUT EXCEPT LR. 1ST FLOOR DEN OR 5TH BEDROOM. DO NOT USE REAR STEPS. ABOVE GROUND OIL TANK. PROPERTY WAS SUBDIVIDED IN ”08. WAITING FOR UPDATED TAX ASSESSMENT/CURRENT TAX RECORDS SHOW PRIOR TO SUBDIVISION .HOUSE AND LOT SIZE 100
Acres: .43
Beds: 4
Baths: 2

Additional Notes: House was under contract and then was put back on the market. I’m going to get comps and then see if I can go see the house and I am at least going to drive by and take a look. Here are some more pictures, click on them to see larger image.

My initial guesstimate on ARV is $450k and by looking at the pictures the repairs would be about 50k so that leads me to an MAO of

(450k * .65) – 50k – 5k = 237.5k

Numbers will be adjusted after looking at the place. If anyone reading is a rehabber can you help me with the repair costs?

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Comments 2

  1. Scott – your repair costs will depend a lot of the quality of the materials that would need to be put into the house to compare favorably with the other properties listed in the area. It sure doesn’t look like a 50k repair budget would be needed from what I can see in the photos. But I’ll be happy to share my thoughts with you once you get a better idea of what would need done.
    .-= Sam´s last blog ..Update on both in contract properties =-.

  2. Scott – your repair costs will depend a lot of the quality of the materials that would need to be put into the house to compare favorably with the other properties listed in the area. It sure doesn’t look like a 50k repair budget would be needed from what I can see in the photos. But I’ll be happy to share my thoughts with you once you get a better idea of what would need done.
    .-= Sam´s last blog ..Update on both in contract properties =-.

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