Discussion on transaction analytics
Discussion on transaction analytics
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- I found a good-selling property in Jacksonville - Arlington - about 60 percent below market price (according to Zestimate). Needs renovation. Sold at 80 $ 1,000 less than market price. Want to get a cash partner - need to have someone remodeling at least one property remotely. An advantage to those who did it in Jacksonville. This deal will not last long in the market. Equal distribution of profits. Receive address and details after signing confidentiality agreement and non-compete.
- After I shared the details of the deal. The following are some of the conclusions that emerged from the basis tests:
1. Good schools (above average)
2. Adjacent to the park that looks beautiful but in a more thorough examination it is a combined cemetery and a park (in my opinion a drawback)
3. Reasonable taxes for the area.
4. Not in the flood zone
5. Medium-quality images may suggest a termite problem and / or need a roof cover.
6. Pictures show an amateur renovation that was carried out and will probably require a serious upgrade
7. The house is old, requires special attention to infrastructure (plumbing / electricity / sewage)
8. False numbers do not reflect the real value of the house, which is probably lower.
Total kindly house. Full information will be after the inspection and after receiving a quote from the contractor.
Successfully! - Thanks to Liron. Accurate diagnosis. The house is sold for about half the market value we examined - about 50 when it can sell for about 100 - to non-new homes. If new renovations can get more. A flip deal is worth according to the rule that every renovation investment dollar has to make half a dollar in sales, say the renovation is estimated at 30 thousand, after home renovation costs 80. After closing costs let's say 85 thousand. A sale on 100 will give you a profit of 15 thousand, which is exactly half the cost of renovation, which means that the flip all depends on the price they receive - below 30 thousand it is worthwhile, above 30 it is not worthwhile. For long-term investment, 85 has to invest thousands of cash and receive a refurbished asset at a price of at least 15 percent below market price. For rent of 900 dollars, 12.7 receive a gross percentage. For rent of 1000 dollars, we are already at 14.11 gross percentage. After the Knesset rents at such a price, there is a chance that the property could be sold as a new return property at a gross percentage of 10, and then for that yield the published price would be about 120 thousand. If we compromise on 110000 we made a gross profit on the 25 $ 1,000 flip. If we haven't sold yet we are left with an excellent new rental property that makes between 12-14 percent.
Thanks to Liron. Accurate diagnosis. The house is sold for about half the market value we examined - about 50 when it can sell for about 100 - to non-new homes. If new renovations can get more. A flip deal is worth according to the rule that every renovation investment dollar has to make half a dollar in sales, say the renovation is estimated at 30 thousand, after home renovation costs 80. After closing costs let's say 85 thousand. A sale on 100 will give you a profit of 15 thousand, which is exactly half the cost of renovation, which means that the flip all depends on the price they receive - below 30 thousand it is worthwhile, above 30 it is not worthwhile. For long-term investment, 85 has to invest thousands of cash and receive a refurbished asset at a price of at least 15 percent below market price. For rent of 900 dollars, 12.7 receive a gross percentage. For rent of 1000 dollars, we are already at 14.11 gross percentage. After the Knesset rents at such a price, there is a chance that the property could be sold as a new return property at a gross percentage of 10, and then for that yield the published price would be about 120 thousand. If we compromise on 110000 we made a gross profit on the 25 $ 1,000 flip. If we haven't sold yet we are left with an excellent new rental property that makes between 12-14 percent.
After I shared the details of the deal. The following are some of the conclusions that emerged from the basis tests:
1. Good schools (above average)
2. Adjacent to the park that looks beautiful but in a more thorough examination it is a combined cemetery and a park (in my opinion a drawback)
3. Reasonable taxes for the area.
4. Not in the flood zone
5. Medium-quality images may suggest a termite problem and / or need a roof cover.
6. Pictures show an amateur renovation that was carried out and will probably require a serious upgrade
7. The house is old, requires special attention to infrastructure (plumbing / electricity / sewage)
8. False numbers do not reflect the real value of the house, which is probably lower.
Total kindly house. Full information will be after the inspection and after receiving a quote from the contractor.
Successfully!
I found a good-selling property in Jacksonville - Arlington - about 60 percent below market price (according to Zestimate). Needs renovation. Sold at 80 $ 1,000 less than market price. Want to get a cash partner - need to have someone remodeling at least one property remotely. An advantage to those who did it in Jacksonville. This deal will not last long in the market. Equal distribution of profits. Receive address and details after signing confidentiality agreement and non-compete.