Hello everyone and thank you in advance! I am long time BP listener (2017), and am looking at what would be my first flip. I have ran the numbers and am confident that the project would have great profit margins- assuming that my ARV is correct that is. I am having trouble setting an ARV because the house was built in 1966, and the layout feels awkward. The rooms flow well, but there are 4-5 steps going down to the dining room/ kitchen, another 4-5 down to the basement, and 4-5 going up to the second floor from the entry way, and 4-5 going up to the 4th bedroom. So essentially there are 5 different "levels" in this house.
I currently own a split level LTR, and am considering this property, but I was wondering if anyone could give me insight as to how this layout would effect the ARV? should I factor an additional 15% into my offer? 25%?
I see you have got some solid advice so far, but I thought I would add my input. I personally do not like that kind of layout. As has been stated given the correct numbers you could still do well, but I rarely buy a property that I cannot fix layout issues. I have tore out walls, added walls, built additions and so on to make layouts better, but what you described is not something I could fix with a rehab. I'm not saying the project won't work, but for me it would be worth less to some potential buyers.
Hello everyone and thank you in advance! I am long time BP listener (2017), and am looking at what would be my first flip. I have ran the numbers and am confident that the project would have great profit margins- assuming that my ARV is correct that is. I am having trouble setting an ARV because the house was built in 1966, and the layout feels awkward. The rooms flow well, but there are 4-5 steps going down to the dining room/ kitchen, another 4-5 down to the basement, and 4-5 going up to the second floor from the entry way, and 4-5 going up to the 4th bedroom. So essentially there are 5 different "levels" in this house.
I currently own a split level LTR, and am considering this property, but I was wondering if anyone could give me insight as to how this layout would effect the ARV? should I factor an additional 15% into my offer? 25%?
All help and advise is very appreciated!
It's all about the comps, if the comps support the ARV its good. If you're going to "force" it to work it becomes more risky. If you're really familiar with the neighborhood it may help. Remember projected ARV is still somewhat of a guess, a house only sells for what someone is willing to pay. Keep in mind DOM is important to your success.
Sounds like a typical split level home where the splits are either on the sides or front and back. Usually in most of those style of homes, the very bottom level has no windows and isn't that functional.
Do you know if the other homes in the neighborhood are all built the same? If so, are they all currently occupied or have their been other property sales recently? If your purchase and rehab costs make sense and are well below other recent sale prices, you should be golden
I see you have got some solid advice so far, but I thought I would add my input. I personally do not like that kind of layout. As has been stated given the correct numbers you could still do well, but I rarely buy a property that I cannot fix layout issues. I have tore out walls, added walls, built additions and so on to make layouts better, but what you described is not something I could fix with a rehab. I'm not saying the project won't work, but for me it would be worth less to some potential buyers.