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remodeling a house?

I'm thinking of buying a multifamily house ($99k asking price, in one that I have in mind) in a neighborhood that is beginning to gentrify. You will be hard pressed to find ANYTHING under 200k in this area, so I'm sure this house needs to be completely redone. As a matter of fact, the assessed value is 93k and I've noticed that for some reason these places are typically sold for twice the assessed value, which makes me think it might be a foreclosure. I have only 10k in actual cash for a house, but am putting $200/wk away towards a house (out of my $550 take home weekly, I save $415 for one reason or another) and I have excellent credit, will have a place to live (free) so I can afford to pay for this place if it's unlivable (the one I'm looking at right now -- it's either unlivable or a foreclosure that is probably still in bad shape) Am I wrong to think that I could handle remodling a house (and no I'm not trying to quickly flip it) with almost no practical experience? http://yahoo.realtyview.com/details/start.aspx?propid=010E000201474

Public Comments

  1. It seems that you may be a little short of cash here. can you raise more? Do you have friends/family willing to work for meals & Beer? See what is available from town/city for re-hab grants and loans. Ask your agent about what others have done in that area. Good Luck.
  2. Before purchasing this house, see the realtor that has listed the house. Ask them if the house is in foreclosure. If you don't like dealing with realtors (I know I'm not a fan), go to the Town Hall where the multi family is located. Once at Town Hall, you'll go to the tax assessors office - they are a great place to start. If the house is in foreclosure, they'll have the information on file or can point you to another department that would have more info. If the house is that far under the market - you said it's listed for $99k when others go for $200k, you really need to have it inspected. Does it have asbestos? How is the electrical? How old is the house? Does it have fuses or a breaker box? How's the foundation? Are there any other multi-family houses in the neighborhood that you can look at so you have a comparison? That would be a good idea as well. While this could be a great investment or jump in the real estate world, you need to go in with both eyes open and not just your wallet. Keep in mind, if the house needs a great deal of work (structural, not cosmetic), you'll most likely be hirining constractors to do the work. There's another expense. Good luck and only work with people that you trust or come recommended.
  3. I don't think so. You can't get anywhere in life if you don't try things and all these people who are now pros at remodeling houses started with no experience at some point. I just bought my first house, and it needs alot of work. I fell a little overwhelmed cause I'm 22 and have no idea what I'm doing but once it's all said and done and I have my first rental ready to go I'm sure I will be glad I did it. You should read some books on the subject, I personally like Russ Whitney books as well as one book called Investing in Fixer Uppers by Jay something. I think you'll be happy you did it just make sure to do your research and maybe get someone professionnal to check out the house and make sure it's not irrepairable or going to cost you an arm and a leg cause then you might regret it after all.
  4. Check with the listing agency and see how long the house has been on the market. If it's such a good deal, people would sure jump on it. Find out if the price has ever got reduced and if it was by how much. The listing should say if the loan is conventional or corporate owned or foreclosure. If it has been on the market longer than average, I would investigate why.