Chicago Brick 2 Flat: Deal Or No Deal?! You tell me!!

Chicago Brick 2 Flat: Deal Or No Deal?! You tell me!!

Brick 2 Flat, 2 beds 1 bath each unit.

Neighborhood: Woodlawn

Potential Asking: 20K-ish

Repairs: 80K

Estimated Rents: 2,400

Notes: Only 2 beds each. Property was abandoned by owners, who now want to sell after getting some serious city violations. Property is severly damaged, both roof and basement have water damage. Taxes are still owed as well. Property can be sold for VERY cheap, so is it a deal or no?

Let me know what you think and maybe we can get this deal done! Comment below.

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2 People have left comments on this post



» Jacob said: { Oct 11, 2011 - 03:10:46 }

RJ,

What you could consider is to buy the property at $15k, and hire a crew, order a dumpster and clean the place up. Dont fix anything. Just cleaning the place will take it from $18K wholesale to 21k. Another step you could take is to strip the place. Basically anything that needs demo and rebuild, like drywall, flooring etc..get it out of there. This will clean up the place for investors to look at the house in a different way, and bring your wholesale to $24k

The numbers dont work on the rental scenario, but if as you say ARV is 230k ( i know, not enough comps), it might work. Its tight, because most investors will look at $80k rehab investment and 2 or more months of work, to at least garner equivalent profit. Not for faint of the heart investor. Even then given the amount of much easier props/profit available in the market today, its a no go to tie that much money in one property for the investor with iffy ARV.

If I won anything, let it be your direct contact (email) info, so we can talk shop and share tips n strategies. Good luck. Peace.

» Miles Capital said: { Mar 26, 2014 - 05:03:03 }

There is too many deals out there in which you have more favorable comps and easier flips. I just did a deal with a short sale in which I took over property at $25k and did literally $3k in rehab and had it rented out within 2 weeks. That is the problem with today’s market for sellers. There are too many good deals for investor. I believe as we continue to rebuild our housing market, banks will begin to lend which will make it more favorable for investors not to pass up these opportunities. Especially as municipalities feel the burn of a low tax base. It will be incentives put in place for investors such as me to take ownership of these properties. The name of the game is cash flow right now. I am not too much concern about ARV, unless I am selling immediately.