Updated about 9 years ago on . Most recent reply
Fire Damaged House Advice
Hi BP members. I have info on a house that has been fire damaged and the numbers look great, but I've not done this extensive of a project before and I wanted to get advice from BP Members that have done a fire damaged house.
Here is the specifics: ARV $424,900 Purchase price $149,900. Anticipated Rehab $125,000.
Here are the specific numbers on this house:
Purchase $149,900
Estimated Purchase Closing Cost: $6,000
Rehab cost: $125,000
Selling Closing cost: $6,000
Selling Commission (6%) $25,494
TOTAL COST $312,394
Sell for $424,900 - $312,394 = $112,506 = 36%
Estimated length of time to close on sale 8 - 12 months.
What are your thoughts? Is this a deal worth going after or not? I currently don't have all the cash to buy this and fix it up. What options do I have?