I'm 24 and I'm lost!

[Ricardo White]

I have no clue on how to run comps and or calculate ARV or rehab cost. I do have an example of a deal i was working on that I think I may let go because of to much red tape associated with the deal. I'm not asking anybody to do the work for me I think if I figure this out though I'll be well on my way.

1312 South Roxboro Street Durham, NC 27705
Tax Value $62,856
5/2 1,936 feet full basement
8,000+ sq ft lot
has code violations due to the fact it was built in 1925 and is "basically" condemed needs complete rehab but I'm not sure if there are foundation issues/major plumbing issues. The house is located on a main street however surrounding streets aren't so great. I've used sites such as Realquest Express and Zillow but the estimates were so different on value that I really have no clue.

The seller is asking for $45k which in my opinion is too high but she was quickclaimed the deed by her son who owes 20k to my mother (lienholder) HE NEVER PAID A MORTGAGE PAYMENT not sure the details of the originial contract as my mother is ill and can not find it.

In the future I'd like to be able to acurately figure out the ARV and rehab cost on property so I will know how much to offer to potential seller. I am only 24 and my knowledge is not extensive just what I've learned through internet articles and youtube videos. PLEASE HELP not trying to be greedy just trying to help family out, do something I've finally found that intrests me, and pay off student loans!

[Richard Warren]

To determine ARV you need to know what similar houses are actually selling for. What they’re selling for is not what they’re listed for. If you are in an area with a lot of homes and plenty of transactions it’s easier. If not, you may have to work a little harder. One thing you can do is figure out what the typical price per sq. ft. is in your area. This will only give you a ballpark figure, but it’s a start and you can see if something seems to be far out of whack in one direction or the other.

As for repair estimates you need to do some homework. Go to Home Depot, Lowes etc. Get an idea of prices for basic things. How much is carpet per yard? How much are kitchens, countertops, etc. Check the prices for bathroom fixtures. Talk to workers in the various departments and ask them what typical labor rates are. Many of them have some experience in the industry and could be quite helpful.

Do you know any contractors? If not, you should. Many people are quite happy to share their knowledge, so ask.

It’s not a solution but it’s a start. You build your house of knowledge one brick at a time.

:cool: