don’t need to do to this house and try to get it lined up.
All right? Well, let’s see if I can take that away. You know, so you don’t have to, but it really depends on on what you want to do. So first thing that we have to do to see if you know we can work together is we got to figure out what we believe that the retail value of this property is the AR, they call it the after repair value ARV of this house after it’s fixed up. So you, you’ve probably done your research, you have an agent friend, what is he saying that he thinks the house could be sold for if you fix it up?
So when I talked, it was we started this conversation beginning of beginning the middle of June. And when she had come in and looked at it and went through the whole house, and she had said, no low end you’re about to add, if you were to list it as is put money into it, you could sprach anywhere up to 340 with the way the market is right now. Okay.
So let’s, let’s see if she’s right, because we can just look at the accurate data. So this is your house right here. So this house right here sold for 290. It’s 1000. Okay, I’m gonna have to change the filters because yours is 2000 square feet, right? That’s upstairs and downstairs. Okay, so 1800 We’ll go low, and we’ll go high for two to recall. We’ll spread it a little bit with that works out. Okay. So let’s see what the last 90 days what’s been selling. So this house sold for 322. Five bedroom, two bath and yours is five bedrooms. Right?
It has three bedrooms.
Okay, three, the basement doesn’t have any bedrooms down there. No, it’s unfinished. Okay, so the basement is not finished. Okay. Is it just is it just studs? Or is it you know,
so my rents are actually made a room down there with drywall and everything.
Yeah, it’s not the best drywall though. Okay.
Well, um, so let’s look at this one. 365 Well, now let’s take a look at this thing. I mean, if you could get 365 That’d be great. Right?
Oh, geez. I would I would be jumping up and down all over the place
So let’s take a look at this thing. Oh, wow. Okay. So Well, I was gonna say, wow, they must have really made this thing nice. But look to me. It looks decent. You know, doesn’t look anything special? Yeah, that’s nothing special at all. So it says it’s sold for 365 It was on the market for speech days on market seven. Yeah. FHA and move quicker. Three bedrooms, three baths. So that’s a good time for you. I mean, that’s I would say that’s a good company thing.
I mean, I don’t I don’t know anything about it. It’s not my area of expertise. It’s just pretty simple
pretty simple. I mean, we look at what’s selling and we see you know how much your house would how much would need to go in your house to get it like that. So that has had a finished basement in it. This one let’s take a look at it. A newer floors it looks like they The countertops are aren’t that doesn’t look like granite. To me. It looks like the formica that room Boring, boring, boring. I mean, nothing updated. Right? It looks it looks clean, but nothing. Like they did a full remodel on it. Right. Okay, so that’s 322 They originally listed but the sold price, it went up a little bit. Okay. And that’s sold in May.
So, this one sold for is on sale for 418. But this is a new build. So this is I would say this isn’t a comparable because these are. These are newer, like a newer building or a newer model. And that’s really, you know, that’s nice, right? So, from just my analysis, I would say your property is worth anywhere from 322 to 360. fixed up, right. And there are some lower comps. Let’s see this one. That doesn’t count because that’s a townhome. 265 Because you also want to look at like the bad too, right? If I’m an objective flipper, I don’t want to just go with the highest stuff and just hope I can get the best. And same with you right like if you’re gonna flip bid yourself you want to know, best and worst case scenario? Yeah. Okay, this one decent soul for 265 1800 square feet. Very interesting, right? That one’s sold for a lot less. That’s not good. 363 Okay, this might be a good one too. Is this helpful? I just want to I like looking at stuff before I make my offer with the sellers. If that’s if you don’t mind. I don’t mind. Okay, let’s take a look at this one. This one might have been flipped. Let’s see.
I wouldn’t say it’s flipped, but a decent condition.
But they do have finished basements and in order to finish a basement, like do you plan on finishing a basement like this, like doing the drywall and putting everything down there?
Well, that kind of depends on price point. And if it’s gonna really gonna make me any money. I mean, I’m not gonna go put 15 $20,000 in something that I’m going to make five grand on it. Doesn’t make sense.
All right. So this is the purpose of this call, is also to kind of find out what your takeaway is. Because I don’t know, if you’ve sat down and crunched the numbers on, you know, all your options and what’s going to net you the most money because you’re savvy guy, you’re smart. So look, you definitely want to know which one is going to be the best option for you. So I have a spreadsheet that that we can put all the info into and then I can give it to you. And then I’d love to buy it. If you don’t want to sell to me. Then you can flip it and you can list it. Okay. So let’s go with the numbers. I think your home with a finished basement could go probably between anywhere between 333 20 what we saw on 360 So let’s What do you think I would say to be safe 330 Do you feel good about that? Or do you feel like that’s too low if you were to finish the basement
I’d say finished basements 330.
Okay, so let’s put in this information so it right here as his listing your agent said When did she say two to add if you just listed as is okay, so to add as is, I’m not going to put in my cash purchase price yet, cuz I want to run these numbers with you. And then ARV is 330 with a finished basement. In order to finish a basement you have 1000 square feet down there and 1000 up top right. Yeah, so 1000 square feet. It’s usually about $18 per square foot to to do like a light remodel. I’ll show you the numbers I got right here. So like a basic remodels. 18 bucks per square foot. Medium is 24. And everything is 40. I think if you’re going to redo the basement, what else needs to be done up top?
Flooring paint some cosmetic things. I mean, I don’t see anything that’s going to like new windows and nothing like that. Yes. Yeah, some maze, maybe a little bit of masonry. Exterior pain on the facia some door jams. Okay.
Well, according to my calculator, I just put in 2000 square feet because that’s the house. And then if you do a medium flip, it does 24 times 2000. So it says that the estimated rehab value rehab would be about $48,000 I think that’s kind of high. What do you think?
I mean, if you’re trying to modernize it and make it
I don’t know what I would give you I think it’s going to be $40,000 to do the basement and then upstairs that’s what I think it would cost because if the basement is not done, you’re gonna have to put drywall electrical depends, you know, is there a bathroom downstairs? No, Casey, you probably want to put a bathroom down there to get maximize your value. Bathrooms cost about five grand. So I’d say with this painting and all the work upstairs and then redoing the basement to get the 330 your remodel costs would be probably about $40,000 And in order to do a basement and all that work your whole time. It would probably take you about three to four months to do it with a crew.
If you have like a really good crew that you know can just knock it out and you feel confident might take like two but if if you’re going to run it might take a little bit longer unless you have like a crew that you Do you? I mean, do you have a crew that you would use? No. Okay, so it might take longer. So $40,000 is, is your rehab. So then I put that into the spreadsheet. So 40,000 That’s how much I think it would cost me. So if I were to buy your house, I would have a $40,000 rehab in there. And for you, it might cost you a little bit more, because you don’t have the connection. So that I do your whole time would be about 120 days, so about four months. And then now it breaks down your net.
How much you’re gonna net on this thing? Do you own it outright? No. Okay, so I got a mortgage payoff. Correct. So this is, this is the breakdown of what you’re going to net on the property. If you renovate it, and you resell it. So 330 is what you’d get. What’s what we kind of agreed what would probably sell for if you did the basement, it would take probably about four, four to five months to get the whole thing renovated and sold on the MLS. Once you resell it on the MLS, you’re gonna pay an agent to list it for you, you’re gonna pay him 3%. And then they’re going to bring a buyer’s agent is going to bring their buyer, which is another 3%. So it’s usually 6%. That’s true, traditionally, so you’re gonna have $19,800, and just fees. From agents, you’re gonna have some escrow closing costs fees, there’s no title tax and transfer tax in Utah.
So I took that off, I don’t think you’d need to stage it. So I’m going to take away the staging costs. So it basically takes away all these fees. And then you have the rehab cost. Selling costs, insurance, property taxes, utilities, mortgage, that’s how much it’s going to cost you while you hold the property. So it according to my numbers, and we can change any of these, if you feel like these are inaccurate, it says that you would net 257 300, if you fixed up the house sold for 330, you would walk away with 257 300 for the house. So so that’s a lot lower than the 280 that you were that guy offered for just cash, right. So just I don’t know if that guy is real, or you know, if he was messing or if you can actually buy it. But that sounds like a good deal to me if someone’s willing to pay 280. And I and I can not do the work.
But we can change this, you know, let’s let’s just say hey, let’s say you get the market keeps going up in five months, which is very possible. And you could sell this thing for 360. So what would you net? If that was the case? I like to be objective, I’m not here to just, you know, make the numbers work and in my favor. So you would net to 85 If you could sell for 360. So then you would make more money, right? Yeah. But let’s, let’s make it let’s bring it back down to 330. Because that’s where I think is more reasonable. Okay, so then your next option is listing it as is your, we’re talking it’s vacant right now. You call your agent buddy up and you say hey, just listing on the MLS for me right now. You would net after fees 3%.
You know, sorry. 6% is the fees. Escrow transfer tax, take that away. Home Warranty, we’re gonna take that away, because you’re not gonna stage it. So you’re gonna net 259 If you listed as is after the fees and commissions and everything comes out your pocket. So you actually make more money, according to this listing it as is that if you put all that time and effort into remodeling the house, right? Yeah. Um, you know, let’s, let’s look at another scenario. What if you didn’t put in 40k to get 330? What if you just put in 10k? Like you’re telling me, you don’t redo the basement? You just leave it as is. And you just make the upstairs nice, right? Is that an option? Yeah. Okay, so if that’s the case, maybe you can get what 3053 10 So if you do this, let’s say 305. Add an extra zero in there.
Is this helpful by the way?
Yeah, it’s making sense. Okay.
So 305 So, even if you put the 10k into it, and it took you a couple months to do the that work while you’re in California back, you know, trying to manage a flip while You’re gone. You’re netting 269. Which is it’s better than if you listed as is. But I mean, I don’t know if you’ve done a flip before, but it’s it’s not always fun to, you know, manage people.
Contractors, I’m trying to do as the least amount as possible.
I get it, I get it completely. So all I’m saying is the two at that sounded like a good deal to me. And I’m not, I don’t know who that was a lot. There are a lot of buyers in this market right now who like, they don’t know what they’re doing. And they do their cash buyers, they’ll make you an offer. And then they’ll do an inspection and they’ll say, Oh, well actually need to be here. I mean, that happens a lot. So, you know, that could have been what the guy was doing. For me, I know that. I put my numbers in here. And I say, Okay, where’s it going to make sense for me to buy your house, so let’s say it’s worth 330. And I buy it for 280, like that guy was going to offer you. And I put in 30k of work. After the commissions and fees, and I have to pay reselling it and because we pay your closing costs, too, right? Like we’re gonna, we’re gonna pay all your fees, you won’t have to pay any money, you’re gonna net exactly what we agree on. I would lose $14,000 14,255 If I bought it at 280. So if you if you got that guy’s number, I’d call him and I, if I were in your situation, I’d say hey, you still want to give me 280?
You know, he kinda he kind of burned me. So it’s what what happened was supposed to be 300
And he couldn’t come up to 300. Or his funds, he couldn’t come up to three. And he’s like, Well, I can do 280 I’m like, No, but like, yeah, and of course, the closing date twice on me. And then they have closing says, you know,
I only have 280 that is a burn.
Plan. But then I was like, yeah, so somebody else would do it. But I’m not so much enough. Yeah.
And that’s, that’s super frustrating. Because, you know, that might have been his plan the whole time. You know, just like, hey, I’ll try to renegotiate the day, which is, I think, is very shady. I mean, if I ever have to renegotiate, I do it. You know, within my due diligence period are way, way before the close. So, you know, the seller is never in a situation like this. That’s that pisses me off. So anyway, um, according to these numbers to ad is very tight. According to this information. If it could go for 360 I start making some money on hoping that it could sell for more. But I meant it sounds just from looking at the numbers. I mean, what what are your where’s your head at? Are you like, Hey, I’m looking into fixing it up just a little bit a lot. Or I’m just thinking of listing it as is.
That’s really what I’m here to look at it. Find out what exactly entailed because it was the first time I’ve been in here since Miranda has been gone.
And you’re saying it’s a little worse than you thought? Yeah.
I mean, it needs new baseboards and just little things like that. But that’s cosmetic stuff, but stuff that I don’t feel comfortable leaving,
Of course, well, how can I help? I mean, I’d like to buy it, but from using my numbers, I don’t want to get in a situation where it’s kind of like risky for me. But I am willing to buy I mean, we just closed on a one. You know, West Valley, you know, the Utah area pretty well. Right? You there. Yeah. Sorry. Yes, sir. That again? No, I was just saying we’ve got we just closed on one in West alley. Like we’re always doing flips. And we have multiple partners we work with so I mean, we’re always we can flip as many properties is that there are available but I mean, having that been said we, you know, it’s got to make sense.
Of course. If you want to use want to send it to me email it to me. Then I can compare with the wife and and see kind of kind of get somebody to kind of look at this and tell me what it’s going to cost me to fix up and then we can go from there.
Yeah. So you still are open to like having someone like me buy it versus you know, you doing the work yourself? Yeah.
Oh, yeah. Like I said, I mean, it’s hard to do anything when you’re 1000 miles away, so I have to pay somebody to do everything. Yeah.
Let me ask you. Let me ask you this after looking at these numbers and knowing that I’ve gone through them and in Slough, amen. We’re able to, you know, work with you on these. It looks like either way, no matter what you go, you’re gonna net, either fixing it up or listing it around to 60 to 60 to 250. I mean, are you willing to sell this thing for cash around that price point?
It’s hard to, I guess that I need to I need to look at what it would take me to fix this and get it on the market.
Gotcha. So I don’t,
I don’t, obviously, I can’t do this and, but I have a brother in law that does flooring. I have a electrical buddy that I used to work with. I mean, so the big things I can get pretty cheap. are not cheap but done at a relatively cheaper price. But then anything major then I’m gonna obviously have to have I’m gonna have to have somebody here managing it and
yeah, and you’re gonna be out there all weekend. You said? Yeah. Do you mind if I if I check it out? Or I sent one of my my guys that was in Ogden to go look at it while you’re there this weekend? Yeah, that’d be okay. Yeah. Okay. Yeah, cuz that’s what I’ll do. I’ll just off of wait for you to kind of get some bids, figure out how much it’s going to cost you to fix it. And then maybe I should just call you What do you say like, when’s next week? Wednesday? Thursday, just check in? Yeah, I should work. Okay. You were saying you want this right. You want this little analyzer?
Yeah.
Okay, so now I can compare and, you know, make with the with the other couple that I’ve gotten talk with the wife see, you know, look at the money, look at what’s going to cost us.
Okay, if it makes sense.
Yeah. So I’m gonna just send this because it’s a whole spreadsheet, it’s hard to use, I’m just going to send you the PDF version of it, if that’s okay. So it’s just going to be like these numbers I made is zero.
Okay, so I’m going to do that for you. Export.
But yeah, so I’ll call you. And if I can get my guy out there. I’ll probably call you to tomorrow. Or maybe just next week. Are you only here this weekend? Are you going to be back? You’re gonna be here next week as well? No, I won’t be here. He’s only Sunday night. Okay. So if I want to send someone through, it’s probably best tomorrow.
Yeah, well, after my mom has my keys to the house too.
So. Okay, so if we need to, we can probably get in there. Either way, because that would give me a really good idea of what we can pay. And then when we have another discussion, whether you’re fed up with it and you want, you just want to sell it as is and get it done. I mean, we can close on the house, you know, probably next week or, you know, the following week, if you want to get it done. We are we are closed as Ken you know, we’re ready. So it’s not a matter of like, you know, getting the money. It’s just whenever you want us to close.
Okay.
Okay, well, any questions for me before I take off? Nope. I think that’s it. Okay. I’m gonna send you this, this information into your email and I’ll follow up next Wednesday. Perfect. Thanks for your time, Michael. Thank you have a good night. You too.
