[Calc Review] Would you do this deal?

Question

Hey guys - found this deal on the MLS in Beckley, WV, our farm area. I walked the property yesterday, and the roof is in good shape, no foundation issues either. Full unfurnished basement that could be turned into an additional bedroom or two, or could be lifted and plumbed to add a second unit downstairs in the future. For now, we are keeping it a 3/1, redoing the flooring, painting, and updating appliances.

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*This link comes directly from our calculators, based on information input by the member who posted.

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*This link comes directly from our calculators,                  based on information input by the member who posted.

Derrick E. · Answer

@Timothy Doenges Yes I would do this deal but I would obviously low ball even more if I could. I also don't ever count for appreciation or income increase for our area. I'm not as familiar with Beckley, but in Huntington, Charleston, and Eastern KY the house is just as likely to lose 2% as it is to gain 2% so I don't even factor it in.

Is the Beckley area appreciating well?

Andrew Angerer · Answer

Well, if the numbers are true then you fall in good range for MAO for a fix and flip.

I'd love to see pictures of the place, do you have any?

Timothy Doenges · Answer

@Derrick E. It is starting to pick up. This property is three blocks from WVU Tech’s new campus, and the school is growing like crazy. The demand for housing is expected to explode in the next few years, as the school anticipates 1,000 more students each year for the next 5-10 years. I’m looking not only for cash flow but for land value increases just from being in the path of progress for the school. Anything within a three minute drive of campus is fair game for that, as far as I and some other real estate agents familiar with the area can tell.

Timothy Doenges · Answer

@Andrew Angerer I have the pictures from the MLS but not any personal pictures.

As far as fix-and-flip, I haven't ventured into that space as of yet. Not sure our market will support it.

I'm working it as a BRRRR - I think I'll get all my cash out since it works as a fix and flip.

I'm going to walk the property again in the morning and might put some pictures up when I get a chance.

Thanks!