What do you base your "feeling ...from $550k - $635k" on?
I'm sorry @Joe Villeneuve .
I wasn't quite clear. Im buying home for my family and not as an investment.But as a plus the property has an additional 1/1 (basement) that can be rented later.(but not zoned for)
Property is currently offered at 750k , a property right beside almost identical was sold for 725k on conventional mortgage and it was initially offered for 769k. (5.72% decreased on a conventional mortgage that took almost 4 weeks from pending to sold).
So based on this data I have estimated(not exact science) that I could give a lowball cash offer for 550k(maybe w/ some luck) but with some room to go up to 635K (which is a 14% decrease on the listing price and hoping to close fast with a cash offer)
70% of $900k is only $630k, which would be the max you could refi. You said you estimated $100-200k in rehab (where di that number come from?), which for a house built in the 30's is probably very low. If you subtract $200k from $630k, you end up with only $430k. So, if you wanted to get all of your cost (rehab and purchase) back from a refi, you can't offer more than $430.
The property has good bones like I told you :
NO Structural problem
NO Foundation Problem
I will be redoing all electrical , water/sewage , gas and probably the some thermal Isolation .
Brand new kitchen , baths and tiles .
Open the Layout to an open concept .
So my GC estimated based on his visit on the property that rehab cost would be around 100k to 200k .
If you are wanting to have this as a rental property (LOL) there is no way you will CF at that price unless the rent was at least $3500/month or more.
With incomplete numbers (estimates count as incomplete), there is no way of telling if this property has any chance of saving as a deal. In other words, there is no way to judge what an max offer would be, but I bet it wouldn't be any higher than the mid $300k's.
