ATM = Another Thousand More
So now that we are all caught here! Here is an update in real time:
I finally got an answer from one of the property owners. She counter offered for an additional $2,000. I was actually expecting her to say thanks, but no thanks so this is progress. Told her I would review the numbers and see if how close I could meet her expectations.
Seller says she's researched land values and think it's a fair number.
Here's a breakdown of the property
- Single family - 2/1 - built in 1945 - 962 sqft
- Lot size - 0.62 acres
- The market value per appraisal district is $39,110
Comps - 2 beds1 bath 821 sqft Sold $75,156
2 beds1 bath 780 sqft Sold $66,512
Now the plan is to wholesale this piece of property and to profit a minimum of $5K.
I will call her back on lunch today to counter offer.
Stay tuned!
Comments (2)
@Dean Weltman Thank you for the insight. Got a demo quote of $4500, and she's asking for 15K. Need a GC on my team to help me better estimate repair cost.
Jessica A. Smith, almost 9 years ago
Don't forget that if the house is worthless and you're just buying the lot, it's not worth what the county says it is. There's some figuring involved regarding what it would cost to build a house to the square footage that would achieve the market average for that area.
But at a minimum you need to figure in the cost of demolition, which I'm guessing would be around $7k to $10k, just looking at the pictures and over-estimating a bit. That demo cost should come off the price of the lot.
Even if you replaced the house with a small thousand sqft at only about $60/ft, that's $60,000. Add in the $10k+ for demo, plans, permits, etc... Now your at an easy $70k, plus the lot and whatever other costs you may have incurred, you're at or over the $100k target. And obviously, no investor is going to all that trouble just to break even or lose money...
Even if it's not a tear down I think she's probably asking too much... Something to think about.
Dean Weltman, almost 9 years ago