The ARV seems to not be totally locked down because of the area. It's a lake house just an ear-shot from the lake, yet the neighbors call that neighborhood the "hood", even though the area is nice, clean and has no real crime. The property has a private forest in the back that deer run through. I think they call it "the hood" because there are mobile homes on my block and it's not water-front, and while mine is a mobile home, it has two additions that make it look like a full sized house. So, I think the neighbors are jealous of my house because it's the big one with the big lot and towering trees. Some neighbors there told me to tear it down.
I think the ARV is about $150K, even though there's almost no comps for this kind of house in the area. There's too many things that need to be done with the house because the previous owner "Jerry Rigged" things. I'm hoping that someone in construction will buy it so they can work on it themselves and save money.
Also, I don't feel confident in hiring a contractor to fix it. I was encouraged to fix it and rent it out. So I contacted a contractor and he said the whole house needs to be demoed because there's a lot of mold, yet he said he didn't look at the additions, just the mobile home part, and was only there for 3 minuets. I don't know how to handle or find honest contractors. I just want to get rid of it and learn to hire contractors as I buy houses that are easier to work with. I feel overwhelmed right now.
Yes, it comes with a hot tub and it looked like it was in good condition actually! After fees, dumpsters, gas to drive cross country, etc.. I'm about ~$20K into this property. I'm hoping the light at the end of the tunnel is to put this property in the hands of someone that'll know how to handle it and that I'll at least break even or gain some profit. I spent a month there cleaning it up and lifting heavy furniture, drywall, wool insulation, etc... I hadn't been in that good shape since high school! Lol!
My exit plan was to drive there with a handyman buddy of mine and to fix it up ourselves, then offer him a percentage of the profits once sold. I left to go there first, but when I arrived the damage was obviously too great, so I told him not to bother to come. We were really excited at first and thought it was going to be an awesome summer project.
I don't think people in that area rent out large houses. It's far from cities and real estate is so cheap there that people seem to just buy. The Lake area is a kind of a seasonal vacation place for locals. I'd like to get $40K for it so I can pay the debt and use the rest to reinvest.
I know the title is clean, even though I don't have a certificate. It'll cost me nearly twice as much to get a certificate because these are two lots side by side at .45 acres each; totaling .90 acres. The house is on one, and someone could build another house on the other lot. Not only did I do my due diligence on this property before I bought it, the tax deed auctions in Michigan ensure there is no mortgage or other major encumbrances, with the exception of minor code violations like tall grass or past HOA fees. From what I've learned is that I just need to do is have a certificate of clear title from an exhaustive title search, Then only if there are wrinkles on there, then I'd have to do a quiet title, not before the exhaustive search is done. You can do that in most states with taxtitleservices.com.
I signed with a whole-seller to only for him to ghost me right after I signed. I never talked to him again in spite of my many attempts to contact him. His communication before I signed was spotty too. It's not good to bring in a whole-seller if margins are slim because there would be too many hands in the pie.
Michael Smythe what do you mean by "share the rehab bid"?
Thank you all for all of your encouragement and support. Also, I think Justin's comment wasn't at my expense. I get it. Tax deed auctions are really competitive these days, so to actually win is amazing. I hope someone sees my Zillow ad on here and contacts me about buying! 🤞🏼
