Horse Farm Fix and Flip

[Tom Scott]

Hi guys,

I stumbled across a property today that I think could be a good fix and flip candidate but it is a little outside of the standard fix and flip model. I haven't been inside yet but it is vacant and I got a pretty good look through the windows.

The property is in a rural area about 20 minutes outside of a decent sized town in North Florida. It's 20 acre horse farm with a 2000 sq ft house. The house looks to be in decent shape inside, with fresh pain and clean floors from what I can tell. All new appliances and the kitchen may have new cabinets. I can see some minor updates that need to be completed like ugly gold switch plates and out of date light fixtures, all pretty simple stuff. The exterior is pretty overgrown with weeds and trees, but the building exterior looks to be in pretty good order. The property has 2 barns that are usable but would need to be cleaned up and repaired a bit to make them acceptable. The whole parcel is good horse pasture that is fenced, though the fencing is in bad shape and will need to be repaired and repainted. The real kicker is that it had a sink hole repaired at a corner of the house back in 2007. All the records indicate it was done properly and no problems have cropped up since.

So here are my questions:

1. Being so rural comps are tough to find, how do you comp a property like this? How far do you go to find a property to comp it to?

2. How much does a repaired sink hole take away from the ARV? Obviously insurance will be more for me and the end buyer, but how much more?