I have a deal in Houston in a TRUE revitalization zone

[Erin Liggins]

Hi all,

So just I submitted over a contract to a gentleman for a duplex near Rice University and the Museum district that is in a area where some serious revitalization is going on.  We have found a price that we agree on and I am just waiting on his signature.  I think it would make a great buy and hold property to rent to students.  Each unit has one bedroom, 1 bath, and its own kitchen.  It needs to be renovated and I've calculated repairs at about $10 per square foot.  If someone is interested in chatting more about this property I will give you all the specs and numbers.  But in my head, I think its a great deal.  The seller wants to close in 10 days and there is no existing financing on the property.  This is my very first deal that I will have under contract so be nice to me! :) lol

[Andrew Taylor]

You're "lowering your fee to $10,000"? Good lord, what did it start at? 

Inflated assignment fee aside, I think you're seriously underestimating the rehab costs. I'm a contractor and there's not much I can do with $10/sf. Assuming it needs flooring and paint, you're not left with much budget for anything else. Cabinets? Countertops? Electric and/or plumbing fixtures? 

Is the city going to require you to bring the plumbing and electric up to code? Are the appliances in working order? What about doors and windows? The roof? Foundation? HVAC?

Conservatively, I'd guess your per-square foot number is too low by half, assuming the place really does need the bare minimum.