GrandLakes Posted April 15, 2008 Share Posted April 15, 2008 I came across this property:http://search.har.com/engine/dispSearch.cf...mp;backButton=YI went by to check things out. It has a sign on the front door that basically says 'enter at your own risk' due to the fact that it has been infested with mold. The foundation has ovbious issues because the brick facade on both sides is cracked. Badly cracked. The interior needs the obvious cosmetic work done - paint, flooring, fixtures, kitchen work, etc. The exterior landscaping needs cleaning up and some work. The pool...well, I guess drain it and see what you have to work with. The average selling price in this neighborhood is around $120,000 to $130,000. What price would you buy this home at? Is it even worth trying to fix? The houses around this one are very well kept - this one is the eyesore on the block. I have never flipped a house but have considered doing so. Or, buying a house, fixing it, and renting it out. Can you get insurance on a house that you are flipping? How does that work? Link to comment Share on other sites More sharing options...
musicman Posted April 15, 2008 Share Posted April 15, 2008 if you're a first timer, this project is probably more than you'd want to bite off. badly cracked brick isn't a good sign and the mold isn't something an insurance company wants to hear. Link to comment Share on other sites More sharing options...
Orikal Posted April 15, 2008 Share Posted April 15, 2008 I have never flipped a house but have considered doing so. Or, buying a house, fixing it, and renting it out. Can you get insurance on a house that you are flipping? How does that work?Most major companies offer course of construction coverage, which is fully earned at policy issuance and typically lasts for one policy period (12 months). If the dwelling is not occupied by the first renewal, whether by the insured or tenants, you can usually take out a second term at a higher rate. All insurance companies are different in their guidelines, so I'd do some research or have an insurance agent complete it for you. However, the insurance company may not like the knowledge you may be intending to sell once completed, therefore you may want to leave that out until you've come to a decision. Link to comment Share on other sites More sharing options...
rbarz Posted April 15, 2008 Share Posted April 15, 2008 Also there are insurance policies called "Builder's Risk" that are fully earned. These policies are actually cheaper than a regular policy when the home is vacant and cover theft of materials and vandalism. Although, Insurance is the least of your concerns.... There were multiple offers a few days ago and you have missed the deadline for submitting one. Foundations are almost always cheap to repair no matter how bad it is. The costs start adding up if the plumbing under the home needs to be replaced. I think mold is blown out of proportion all the time. Link to comment Share on other sites More sharing options...
GrandLakes Posted April 15, 2008 Author Share Posted April 15, 2008 Yeah - I hear you on the deadline. I know that has come and gone - I am just trying to use this as a lesson for going forward. When you say foundations are cheap to repair - what does that mean? $5,000? $10,000? I forgot to mention that the walls were badly cracked too. On houses like this is it possible to bring a contractor in before you buy it in order to get a ballpark estimate of what the repairs are going to cost? Link to comment Share on other sites More sharing options...
rbarz Posted May 13, 2008 Share Posted May 13, 2008 Yeah - I hear you on the deadline. I know that has come and gone - I am just trying to use this as a lesson for going forward. When you say foundations are cheap to repair - what does that mean? $5,000? $10,000? I forgot to mention that the walls were badly cracked too. On houses like this is it possible to bring a contractor in before you buy it in order to get a ballpark estimate of what the repairs are going to cost?On this size home foundation repair most likely would run around $3000. You can pay anywhere from $85 to $450 per pier for basically the same service. The company I use is $115-$135 a pier and offers a lifetime warranty. Keep in mind that repair can sky rocket with damaged plumbing and severe problems like if the home sits on one of Houston's 300 fault lines.On houses like this is it possible to bring a contractor in before you buy it in order to get a ballpark estimate of what the repairs are going to cost?oh, and yes many contractors will give you a bid before you own the house. There are also appraisal services that will estimate repairs for you including an After Repaired Value of the home. Link to comment Share on other sites More sharing options...
BryanS Posted May 13, 2008 Share Posted May 13, 2008 Coming from a person who has tried - and lost - on getting in on deals like this...First, this house will go to a person/investor who has cash, more than likely. $54K is a teaser price. There will be a good deal of competitive offers on the place. I would guess this place would go for 90K to 110K, when it Link to comment Share on other sites More sharing options...
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