My thoughts on rehab, what would you offer,? your thoughts?

[Michael Lauther]

My rough estimates of rehab: new ac/heat (sosuthern FL),  new tile floor throutgt ,  replace roof , kitchen and bath . I have experience in Dayton OH and Hamptons NY but these numbers mean little in my new market which is in Southern Florida, the Margate area.  I don't need exact numbers but would like to understand approx costs.

These are my initial thoughts for a 900 sq ft 3 bedrooom 1 bath ranch. ARV is $135,000

clean out incl demo bath and kitchen  $2000 

shingle roof $6,000,    ( inc tare down old roof) 

complete ceramic tile floor throughout $9000 

new kitchen cabinets and counter (10x10) incude stove and refrig  6000

 bath 3 fixtures  inc tile walls  $3000

 AC/heat (has duct work intact) $6000

Paint interior $1700 

replace one window and install new sliding glass doors $1700

install base and crown molding throughout.  $2100

tot $37,500 

what would maximum offer be on this property.

Listed for $120K but is a total tare out now heat or ac, electric and plumbing was re done replace electric and plumbing appears to work. The most I would pay for this property would be $70K 

motivate seller, what would you offer. I am thinking $50,000. Property was purchased 2009 for 42K.

what are your thoughts.

can be reneted for 1400 month

would buy to flip but can rent easily if necessary.

[Lynn Bown]

cost of money
I use a spreadsheet we wrote that figures every deal based on the parameters of the costs of finance and how much we would have to bring in cash and pay at final sale to be profitable on each deal.  Also on the rehab I also add 10% to your numbers for "surprise" we average 7%.

Cash is your own cash 

private money is based on 10% of purchase with 0% of rehab from you

Hard money is based on 20% purchase with 20% rehab from you

Hope this helps