Originally posted by @Engelo Rumora:
Originally posted by @Ben Gibson:
So recently I have come across a property in Saint Louis mo. The property was appraised at 187k as is. I do not know how to do the arv but the appraiser that i have gotten to know well recently told me that I could do a light rehab and put in new carpet and sell it for close to 200k. I have got the people to agree to 128k for the house, but I just lost my job so i cant get traditional financing now. I need help with what I should do with this. I would love to rehab it if i could. I have a wealth of info on contracting as i have been a contractor for 15 years. Does anyone have any ideas of what the best way to do this deal would be?
Ben
Hi Ben,
Just a word of caution. The best way to confirm what the property would be worth after a rehab is to see what the most recent and closes comparable sales are.
I don't trust anything or anyone unless I see some comps within close proximity.
Just my opinion.
Thanks for reading and have a great day.
So i ran the comps. The thing is that everything in the area is 300 sq ft smaller becaus this house has an addition of an extra bedroom bathroom and dining room.all of the ones i found within 2 miles in the last 6 months hadno updates, linoleum, particle board counters. old bathrooms and they were comping out at about 174 to @1050 sq ft up to 189 @ 1120. the home i have has an addition but it was done with brick to match the original home and it was done well so the house is about 1400 sqft. so i feel like a 187 valuation is a very conservative.