In Episode 7 of my video series, “Real Estate Deal Talk,” we take a firsthand look at a property that was brought to me by a wholesaler.
It is a street or two east of Atlanta Medical Center in a community called the Old Fourth Ward.
The Old Fourth Ward is an interesting area – it’s transitioning and in some areas is really hot, offering good investment possibilities.
So it was worth looking at this property to evaluate whether it would work for us.
The previous investor lost this house because he ran out of money to do the deal. As you can see in the video, it’s obvious he didn’t do a lot to finish it out.
Here are the numbers:
The bank is looking for something like $165,000 to $170,000.
We got some initial unconfirmed numbers to finish out the house at $130,000 to $135,000, but from the looks of it, it’s going to take a lot more than that to finish this out. It’s probably going to take somewhere between $190,000 and $205,000 with contingency. That’s going to throw off our numbers because if we are looking at a total resale value anywhere $425,000 to $450,000 – assuming the top of the market is $450,000 – you are probably going to sell this at $415,000 to $420,000.
There’s a lot of work that needs to be done, and I really don’t like it. The profit potential is just not appealing. And that’s why we passed on this renovation project.
0 Comments