Water Damaged Bank Owned Large Brick Chicago Home

[Jessica Marin]

Hello, My name is Jess and I am a newer member of BiggerPockets.
I am an airline pilot has decided to expand income streams recently. Over the past 2 months I've read some books and been evaluating properties in markets I am interested. Here is one near me that the whole time I was wondering what problems it would have to be so low.

I have some experience from owning a 2/2 condo in Miami while my boyfriend has some rehab experience from helping 4 uncles in trades a few summers but I am rusty and not from the Chicago Area. We can do basic handy man skills.

Looking for advise from others who rehab and rent homes on what this would actually cost (Likely using 203k loan @ 3.5% down. Plan was shoot for $130k, and with rehab, total <$175k loan.... $195k absolute ceiling. 2500sqft have 3 or 4 bedroom, Rent around @ $2500/m. Is 45k enough for this house rehab? Should get house for less? Total rehab time? Should I drop it all together?

Here is property listing

https://www.zillow.com/homedetails/10125-W-Fullerton-Ave-Melrose-Park-IL-60164/89228743_zpid/


Here is a link to the photos of inside.

https://photos.google.com/share/AF1QipPPgI8iNeLwaaOYvNa5EGj4bwF1KPBweSNOgT_XxMUH-iagFBQl3XTGGGYPoepeQA?key=OVoxNVhwZnZRRlNyM1JJNFhIRThEWFJsMjI1eHVB

I made some notes from the walk through:

Curb appeal:
House- yard work, shutters, repair driveway cracks, small porch for side entrance, some brick sealing / cleaning up wiring, new gutters, new flashing, 2 window (dual pain) replacement, door refinish, some trim replacement, some roof repair.

Garages & Shed - Check code for add on shed (add on is nicer), foundation sunk and cracked in 2 spots, check electrical, new garage doors, new shingles on garage, some roof wood repair, Demo Shed and have firepit/patio on slab.

Inside Home:

Overall- Electrical (multiple types of outlets, grounded/not grounded), Plumbing (Galvanized rusting in most of house), Possible mold remediation, Roof (Seems ok, maybe new by some windows and seal some areas), How is furnace and where was air conditioning. Exterior walls on inside (signs of some water damage, repair brick / insulation / sheet rock appropriately). Paint doors. Replace most lightning, 

1st Floor- 

Walls/ceilings (repair and paint, popcorn ceiling removal), hardwood floors (repair some areas /refinish), tile floors (reglaze &/or replace to be more modern/consistent, 

Kitchen (glaze tile/back-splash, paint cabinets, recover counter top, replace sink, repair wood below sink, replace appliances, replace stove hood-vent)...(Consider remodel of kitchen remodel, expand into dinning area, make window larger above sink, and obviously everything else involved.. Diff assessment), 

Demo wall between living area and dining, paint wood accents, replace / refinish wood accents and some window trim. 

Bathroom (Glaze floor / wall / shower tile / sink, paint cabinet, maybe replace vanity, rehab bathroom hole in ceiling. Paint)

Bedroom (leak in ceiling, damaged hardwood, repaint)

2nd Story- Repaint everything, Floors look like good laminate, 

Kitchen (Remodel, add appliances, fix water damage in ceiling. )

Bathroom (Demo / Remodel, Fix water damage in ceiling)

Bedroom (repaint)

Common area ( Make 2nd bedroom or figure out what to do with door that leads to nowhere.)

Basement ( Flood, likely demo bathroom and replace all lumber on floor. Fix leaks by outer walls and ceiling, reseal, replace insulation, Sheetrock, paint, lighting, maybe add bedrooms)  Could be a another whole suit possibly.

I got tired but that should give the idea of what is going on with this home.
I 1000% appreciate opinions on this home. Was so sad to see al the damage and I know people talk about distressed homes.
Not sure if this is a good buy for this area and worth all the renovation.

Thanks in advance,
Jess

[Matthew Porcaro]

@Jessica Marin

Hi Jessica - good job on all the research you did. Did you have an estimate on what you think it’ll be to repair the property? Just looking at your numbers you’re predicting about 50k for the rehab which in my opinion (General contractor for 15 years) you’re looking well over that.

Also, if you’re looking to do the 203k route, unless you’re doing a streamline loan (rehab amount under 35k) you won’t be able to do the work yourself.

Also, with a property this water damaged you’re going to have to do some structural work, at least the floor joists and it looks like the foundation needs repairing.