Finding out market value after Rehab

[Brooke F.]

Hello BP!

Im a newbie in real estate in every sense of the word, My agent offered me a deal to rehab a multi family property upstate New York. How do i know if Im overpaying ( i cant find similar comps)? Mainly, how do i find out what the market value will be after a complete rehab (60K approx according to his contractor). I want to know in advance what kind of margin and profits im looking at.

Also, he mentioned that i cant get a mortgage on the property. What does that indicate?

Im totally new to this. While i trust my agent, I want to get another perspective and professional opinion. After all, Im gonna be putting all my eggs in this basket.

[Daria B.]

Originally posted by @Brooke F.:

Hello BP!

Im a newbie in real estate in every sense of the word, My agent offered me a deal to rehab a multi family property upstate New York. How do i know if Im overpaying ( i cant find similar comps)? Mainly, how do i find out what the market value will be after a complete rehab (60K approx according to his contractor). I want to know in advance what kind of margin and profits im looking at.

Also, he mentioned that i cant get a mortgage on the property. What does that indicate?

Im totally new to this. While i trust my agent, I want to get another perspective and professional opinion. After all, Im gonna be putting all my eggs in this basket.

 Not getting a mortgage on the property can be several things--you should ask him. Generally, what I have run across is that the property is not livable and conventional lenders will not lend on property that cannot be occupied. Is there a hole in the roof or is the HVAC missing? Does it have windows that are broken? These are properties that my lender described as them not financing because those things make the property not livable.