How's this deal sound?

Question

Hey everyone!

Just putting this deal out there on the thread to get as much feedback as possible.

We found a 2 bedroom 1 bath house for $60,000 and the owner is going to finance provided we pay the $3,500 down payment. The property is ready to rent as is but I have a better plan.

It has two living rooms and I was thinking about throwing up a wall in the one living room and making it a master bedroom with a master bath as well. This wouldn't cost much to do, I'm estimating $7,000-$10,000 to turn this into a beautiful 3 bedroom 2 baths house.

3 bed 1 bath houses are selling for $115,000-$125,000 in the same area so I'd imagine 2 bath would put us well above the others.

Any feedback or questions on this one would be great.

Once I get the project rolling, I'll post progess pictures!

Dustin McGee · Answer

@Antonio Samperi and @Michael Japuncic  I am doing all the work myself and planned to do all of the proper permitting, zoning, etc. I am experienced in building, plumbing, electrical, etc so that is why the price is so low for adding the room. The material is the $7,000-$10,000 and of course my time being there building it out is worth something but I will get paid when I sell the deal.

Thanks for the input guys!

Michael Japuncic · Answer

Make sure you get multiple quotes on the renovation because that seems pretty low for adding a bathroom. Bills for tying into plumbing can really add up. Other than that, it seems like a great deal and plan, good luck!

Antonio Samperi · Answer

Hey Dustin

It sure sounds like a good plan ,

But make sure the zoning allows you to do so before you commit to the purchase of this home.

(IF YES)

pull permits and have everything inspected and approved (once work is completed) by City building Inspector.

That way you will make it easier on your buyer to secure a  loan to buy your home.

Remember  banks will send out an appraiser  to determine the worth  of the property  before they release funds.