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Updated almost 18 years ago,

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Does this sound decent?

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Posted

I have some very brief numbers (will be getting more info soon), but would you do this deal?

There is a particular home for sale for 29K in a gentrifying neighborhood. Located in the city near amenties, but not in the most expensive neighborhood. Comparable homes (actually the only homes on this street) are selling for 100-119K. The house looks great on the outside and probably just needs cosmetic work inside.

It has very low taxes and very low carrying costs. We think we can make some good investments on the inside for well under 20K (but for emergency room, we've set the budget at 20K).

Based on those numbers, what do you think? Even though we'd try to work as quickly and inexpensively as possible, for whatever reason the house didn't sell, we wouldn't be in too much of a financial pinch if we had to carry the costs until it sold.

29K list price (we'd negotiate)
+ 20K budget
= 49K
list at 100K (thats on the low end)
51,000 profit

(not sure about closing costs, so I didn't add that in)

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Richard Warren
  • Real Estate Investor
  • Las Vegas, NV
446
Votes |
1,821
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Richard Warren
  • Real Estate Investor
  • Las Vegas, NV
Replied

Those numbers work if they are accurate. Do your homework.

8)

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Minna Reid
  • Real Estate Broker
  • Jacksonville FL & Middletown CT
585
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1,337
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Minna Reid
  • Real Estate Broker
  • Jacksonville FL & Middletown CT
Replied

I'll second that...but if you haven't been inside the home, how could you possibly have an idea of an accurate budget? You can't determine it needs 20k, by doing the drive by. Get in and see whats up.

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Replied

Yes, the comps are houses that are comparable in size located probably within three blocks of this property. We are going to look at the property on Sunday, so I'll be able to get specifics then.