1st Investment Property | Deal or No Deal

[Ryan Copeland]

Hello BP Community,

Please take a look at this property to see if I'm on the right track. It would be a flip if I pursued it. Based on nearby home values, the ARV on this property could be up to $165k. The screenshot below from realtor.com shows two houses on the same street that are valued at about 168k. I went and checked it out on Saturday and the summary is below. Please let me know what you think.

Property Summary

• Foreclosure
• 3BR, 2BA, 2190 sq ft
• 2 acre lot
• $65k asking price
• ARV of $165k (possible), most likely $150k
• No garage
• Slab
• Vinyl siding
• Well & Septic
• Property is owned by HUD
• Led based paint notice

Repairs Needed

• Spot replacement of vinyl siding
• Flooring throughout
• Bathroom remodels
• Kitchen cabinets are good, but need to be painted
• Possibly roof replacement
• Facia board replacement all around

Good

• House has a bonus room, which can be converted to a 4th bedroom.
• Windows are good
• Flat lot, big lot
• Built in 2005, so pretty structurally sound

Risks/Concerns

• Possible HVAC replacement
• Has a well. Needs to be tested. Risk of replacement due to sitting 12+ months.
• Has septic tank which needs to be tested. Risk of replacement due to sitting 12+ months.
• Out in the country. Would attract buyers from Shaw Air Force Base (23 miles away) and McEntire National Guard Base (7 miles).
• No recent comps. Realtor could not find anything that has sold recently in that area.