3 bd 1 bath SFH - Brighton Heights

[Jean Clotaire]

I'm currently looking at a 3/1 SFH in Brighton Heights that is in need of some repairs. I'd like to hear from fellow investors in the Pittsburgh area specifically Brighton Heights.

I came across this home by searching for code violated properties. I added this property to my radar list because it currently has 9 code violations with the status of “Sent to Court”. I called the number from the For Sale by Owner sign earlier this week, spoke with the property manager, and here’s what I got from the call:

-Repairs needed:

• Roof
• Kitchen Cabinets

-Full Basement

-Deck in backyard

-Structurally sound

-1664 sq. ft.

Asking Price: $95K (has been on sale for 10 weeks)

I don’t think the asking price matches the current value of the property. I work full time during the day, but I plan to visit the property next week.

How should I move forward? Are there any contractors or experienced investors that can help me in estimating the repair cost (PM me if interested in seeing the property)? Should I send a post card or yellow letter directly to the owner?

I think this may be a potential deal, but I need some assistance.

Also, any comment or thoughts regarding the Brighton Heights and Bellevue area would be greatly appreciated.

Thanks in advance,

[Dominic Lucarelli]

Check the comps in that area (similar 3 bed, 1 bath homes of similar construction) to give you an estimated ARV. Then inspect it to see what needs repaired. By the sound of it, the property will need a porch repair, masonry work, landscaping, and windows. The owner said the roof needs replaced as well? And new kitchen cabinets? Sounds like nearly a complete gut job.

To ensure you make a profit, you'd need to work in reverse: Assuming your ARV of $95k, you'd need to be all in at roughly $57k to flip it or buy & hold, and the repairs (in my best guess from my couch) will be at least $40k. Can you buy this for less than $17k?