All Forum Posts by: Arthur Kelly

This property is in limbo. Owners foreclosed on, bank thinking they should get $49k for it, fraud on the title as the previous relative quit claimed it to themselves without the owners permission so the title must now be cleared.

The property is $10k (land value) at BEST considering the cleanup needed and the property has fire damage in the kitchen and adjacent bathroom. Needs a full drywall gut, electric plus brought up to code to get any permits I am sure as the electrical box needs to be replaced.

Nightmare scenario really.

At $10k, if the title was clear and it was just a gut, I would have pulled the trigger and had a $10k learning experience, but not with all of the attached drama :)

Chad, that would be great. I'd be happy to offer you lunch sometime to pick your brain if you are in fact in Boca.

You have any hard lender experience down here in South Florida?

Actually for grunt work,  I can get 4 guys at $10 an hour. 

You really think I am 50% off for smoke cleaning and rough electric and plumbing?

@Chad_Urbshott

Yes, this area is certainly not in the "nice" part of town and is definitely in an area that you would not want to be around at night. However, this area did just construct 6 new construction projects in the past 3 years on this block, all of which sold for $180+ with city grant assistance and became occupied almost immediately. One of these homes is directly next to this property.

This won't be our residence and is simply a rehab project. I'm not trying to paint a pretty picture, just being realistic. 

At this point, I am trying to set some realistic rehab costs and looking for any advice from anyone who might have some of my costs I detailed above.

I am fully expecting to have to do smoke remediation, entire new drywall, electric upgrades and plumbing. To finish, we will need (2) doors, (6) windows, a full bathroom and kitchen remodel and new flooring.

My conservative estimates have us around $16k to cover those estimates.

The house is a 3/1 1000 square foot property with a small kitchen requiring around 10 feet of cabinetry on one side, 10 feet on the other side and a counter, simple appliances, sink, etc. Bathroom needs to be redone: tile, sink, toilet, tub/shower.

We will likely lay down laminate flooring throughout all the rooms as well although there is 24" tile we will try and salvage in the kitchen.

 So, I did go by to do a visual inspection and peeked in through the windows and a side door was actually not secure so I was able to take a visual as well. (We didn't enter.)

The fire was intentionally set in a bedroom and was contained mostly to that room. Smoke and heat damage was apparent from the kitchen area about 30 feet away and most of the drywall is shot.

The roof is intact, but will require a full redo of the drywall and ceiling, I am guessing electrical and plumbing as well. Bathroom and kitchen need full do over as well.

So, here are my repair cost ballparks, what do you think of my estimates?
(These are just to do the rough rehab. A separate finishing budget will be used as well.)

The house is about 1,000 square feet.

Rehab prep total budget: $4,000

Structural engineer needed to inspect? $500 - 1,000?

Full clean out of debris:
  Dumpster (20 yard): $300
  Labor (4 guys x 6 hours x $10): $240

Smoke mitigation / cleanup: $1,000

Drywall / ceiling demo:
  Labor (4 guys x 6 hours x $10): $250

Electrical:
  Re-wire: $1,200

Plumbing:
  Repair/replace damage: $800

Hello all,

During my introduction post, I was provided a potential home to rehab on the cheap. The house is next to nothing at $10k, its a 2/1 1000sq. ft. and in a rather undesirable area of the city. However, the area in undergoing radical changes. The block had 8 vacant lots all of which new construction were built on.

This 2/1 is now one of the smaller units on the block but nestled amongst some very new homes, so if I can mirror the exterior to the new constructions, I can borrow their curb appeal.

Anyhow, aside from that, it has interior fire damage making in uninhabitable. I do not know the full extent as of right now, doing a visual inspection today.

Does anyone have suggestions or opposition to this kind of project?
What should I be on the look out for in terms of unrepairable damage?
Should I expect heavy mold damage from the water used to extinguish the fire?

Any suggestions or feedback would be great to hear as I am looking for my flip!

Arthur

Chad, it definitely is not an area I would choose to live in, but that block actually has 6 new constructions built in on the vacant lots which were there and is undergoing some community uplifting. With that said, I think the main reason is the fire damage.

Since this would be my first flip, I am not sure if undertaking such a complex project if the right path for me. Sure the $10k price point makes it super low risk, but what could be the potential pitfalls of a fire damaged home when it comes to rehab?

I think I will move this particular question to a new thread to get some feedback on what to look for in fire damaged homes and a rehab project.

Thanks for the great feedback so far!

Wow. Year and a half sitting there plus major fire damage. Talk about jumping in the deep end of the pool to learn how to swim!

I would have to believe that it is just simply not salvageable that its sat for this long, no?

Haha, I'll go "halfsies" with you on it.

Hello everyone,

I have been reading posts here for a few months now and have probably always desired to get into real estate. I remember as a 16 year old watching Carlton Sheets infomercials and knew it was something I wanted to do. (I know to steer clear of "gurus" but he did capture my attention at a young age).

Fast forward and I am now 38 and looking to finally dive in.

I have $20k put aside to "test" my ability with and I have a relative partner who can probably match that if needed. I am not employed at the moment, although my wife earns mid 60s and we have 660'ish credit scores with a BK7 on record 2 years ago.

I live in South Florida, near Fort Lauderdale in Davie and established a non-profit a few years ago with intent to rehab/flip houses or possibly build on vacant land given by a local city top develop on.

Aside from that, I am hoping to meet someone form the area who has been "down this road before" and would maybe be willing to at a minimum have lunch with me to give me some professional advice.

Anyhow, nice to "meet" everyone!

Arthur