help with a potential deal

[Qasiym Glover]

I'm new to the industry and I want to be taught how to do it right. I live in a nice area in Queens, NY, there are a couple distressed/abandoned properties in my area. There's one in particular that I'm talking about, it's not for sale, but it's been abandoned for years, market value of $367,000, three houses next to it are valued at $633,$649,$613. I looked at the county records, if I'm reading it right there is a scheduled drop in the value of $55k. I personally can't say how much will be needed for reno's for sure but from the outside looking in I would say at least $100k.

Is there a potential play on this property? If so will anyone be willing to do JV with me on this? What's the next step?

• • Single Family Residential
  • Built In 1920
  • 1 Unit
• • 1,179 sqft
  • Stories: 2 story
  • 1 Building
• • Lot Size: 4,125 sqft
  • Parking: Garage
  • County: Queens

[Will Barnard]

A quick and easy formula to use that will keep you safe in this price range would be to identify the real ARV (after repair value) which has nothing to do with county assessed records, but sold comps in the area that were like kind and in move in great condition. Once you have that figure for the ARV, multiply by 70% and then subtract the rehab expense (which you stated as $100k). Definitely verify those too before moving forward.

As an example, if the ARV was $500k, then $500k X .7= $350k - $100k rehab = $250k max offer based on this figures.