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Category: Need Advice Current Grade: A Total Views: 2600 Member Comments: 5 |
Posted on: 02/28/2007 Posted by: crystalwillett Blog Points: 5079 View all blogs >> |
All you rehabbers out there who 'do it yourself'.. tell me.. what little lessons have YOU learned when doing a rehab?
Today... I learned that (of course AFTER I put it all down) carpet padding goes net side UP. I'm having a guy come stretch it all down tomorrow and he is VERY unhappy that I put the padding in upside down!
I'd love to hear your little lessons learned (probably.. like me, the hard way).
Oh, a friend of mine just went after a house out here in the country. (FSBO) The house was wonderful, but the lot size VERY small for the county. My real estate agent is a wonderful lady. She tipped him off to have the septic checked on such a small lot... guess what? The septic is 1/2 way UNDER the house. (already possible backing up). If it goes sour, the SLAB will have to be busted out to get to it and there is not enough acreage to rebuild a new one, PLUS the land around it will not perk.... what would you do? Would you RUN? I'd like to hear from someone who would NOT run and why not? Now (as if she wasn't before) the owner is aware of this and major negotiations can be made, but I'm not sure it is worth it... at any cost. Any ideas? thoughts?
Hi Cristal,
Lets take this into a little more detail,
* how old is the home?
* Have you had the septic inspected?(Needs to be a priority) if the inspection comes out good have the have the septic cleaned.
* Will this be a buy and hold? Or a rehab for selling?
*How do the numbers work? What is the Purchase price? rehab costs? selling potential (quick sale and retail) your #'s should work according to quick sale anything above that is juice.
* How long is the average days on market?
* What does the area comp at?
* where is this home located?
A little more info for a more accurate answer.
ACE
I typically buy with confidence that i can resell as easy as possible. Check out "My Worst Flip" blog....I have learned the hard way......tell your friend to not let her own over-confidence or whatever it is take on this challenge. The challenges we take on as investors are to do our homework and make ugly pretty NOT make obscolescence usable. Will she add any value to the home by making such a monster repair? Will the next buyer care?
I am not being harsh...my coffee hasn't kicked in yet this morning, but I suggest she realize there are more fish in the sea (unless the deal is so good you can fix that level of repair). -Jess
Crystal,
IF(big if) your friend wanted to pursue it...
1)Get the septic system inspected(at the owners expense)
2) If it is in good shape, make sure to have a home warranty(one that covers septic systems) included by the seller(Homeguard or HomeShield are good ones).
3) Make sure their exit strategy is to sell the house relatively soon so they don't have to worry about the ticking timebomb after the warranty period(usually 1 year) is over.
Good LUCK!
-MNM