Few Deals I am Looking at

[Keerthi A.]

I have three properties I am looking at. Suggestions welcome.

Option 1 - Single family - crappy school dist/hispanic neighbourhood - 3B/1BT - auction around 60-75K - small rehab cost 20K max - ARV 120-130K.

Option 2 - New Townhome - new community - 200K list - might get for 175K - Kitchen/Bath Ripped off everything else minor - small rehab cost 25K - ARV 225-240K. Bit hard to sell as town is low key.

Option 3 - Single family old house - good area/schools - 150-155K - gut rehab could cost 65-90K - ARV 325K - very high taxes/carrying cost but should be easy sell if priced properly.

First two projects are pretty easy in terms of effort. First one I might be able to fund it myself. dress up kitchen, cheap/used appliances, redo bath, new carpet, landscape, minor fixes could cost 20K. Big variable is what the purchase price will be. It would be a great deal if I can get the place for 50K or so. Roping in a co-worker to a 50-50 split. Sell it at end or keep as cash flow rental.

Second one is even easier quick one, just buy kitchen and bath fixtures. Two to three weeks might be enough. But cannot put cheap stuff in here as this is a new home. Hardwood floors, carpets, windows/doors,etc are new. Selling it however might not be easy. One unit sold for 230K and another listed for 260K in that community. It is prob most expensive townhome in the area, same town as first one. Also funding is possible through 203K. Can be rented easily though but might be just barely cash flow.

Third one is the biggest. Watching it for many months. No financing available. I have to rope in investors. Too big of a project for newbie like me. But massive profit possible. Selling on MLS is not very hard as there are no 3bed SFH under 350K in this area. My 325K number is very conservative. Taxes are crazy at 9-10K/yr.

I am leaning towards first one, but provided I get the winning bid. If it goes above my max price I am not getting in. The third property might be gone in the next week. The second one might not move fast so I can still go for it later especially if they reduce list price.