All Forum Posts by: Julie Taylor

J Scott - It appears that the house may have aluminum wiring. When I initially viewed it, there seemed to be some surging or flickering of lights (although I was not able to duplicate that on the second viewing.) The existing natural gas furnace is clogged and will have to be replaced, but there was apparently not AC in the house originally. From conversations with contractors and HVAC techs and research, it seems that the existing service may not support the increase pull that the AC will require. As a conservative repair estimate, I included the $5800 ballpark figure I've been given to rewire the house and bring a larger service in.

The house is really in good shape...foundation, sills, brick, roof, etc. I am prepared to do a good bit of cosmetic work myself. If I could eliminate the wiring as an issue, it would get it a little closer to being workable.

I have considered biting the bullet for an inspection prior to making a cash offer. If I can rule out wiring, it's about 1/3 of the repairs out of the way.

Again, your thoughts and advice are appreciate.

Thanks much for the responses. You all have confirmed that this is way better as a flip than a hold. The market is not great for flipping here, but it would be a certain "rent" given the neighborhood, which is why I have kept it on the list. Unfortunately, I'm not sure it would be as certain as a "sell".

I have gone back and forth over it looking at the numbers. I do have pretty good quotes on the HVAC and complete rewire of the house. Structurally, it is very sound...cabinets are in good shape...could just be freshened up. Paint, too. Hardwoods under the carpet appear to be in good shape. This house was a one owner house - elderly lady bought it new and lived in it until she died, so it's not trashed.

Still, the big ticket items like the certain HVAC and potential wiring run the price up.

I'll check out the renting/landlord info and the site in general.

Thanks to everyone for being so helpful.

I’m working the numbers on what could be my first deal. Any advice or words of wisdom??

This will be a buy and hold
REO - listed at 40k
I want to make a cash deal to get a better price - Any thoughts on what to offer? 30, 32, 35, 37??
Repairs Needed - 15-19K
This is a conservative estimate – It does need HVAC, we may need to upgrade electrical system (Al wiring - House built in 70's) – I will have inspection to confirm.

After repair value - 95-100K
Tax value: 99K (Rehab home in the same street is on market for 110 - It's a little bigger)
Rent: 700
Taxes: 1000
Insurance: 500
Not a great cash cow after PITI, vacancy, maintenance, but seems like a good opportunity to build some equity.

Was hoping to mortgage it and get my cash back to go again, but I can't seem to find anyone that will work with me without 6 months seasoning.

Thanks so much for your input.