I figured the Fire House we have in escrow will be a good case study as it will be about a 6 month project and will take a lot of work a long the way.
We put it into escrow about a week ago. This one was a first day listing with a new agent. When we saw it come up, we chased it aggressivley and ended up in a bidding war with another investor. Typically, we do not really mess with best-and-final offer deals. So we did not raise our offer and the other investor got it.
Two weeks later the agent called us, and the other investor backed out. We re-submitted our original offer and put it under contract at that price.
We have received a ARV appraisaled of about ~$230k and our budgeting ~$80k for repairs. It seems like the fire started in the garage, right down the center of the house. So it will be all new drywall, new cabinets, new flooring and new bathrooms. Estimating repairs on this project is very difficult, but we have tried to be very conservative. The house was built in ~1980’s so it is pretty good layout and has a nice pool in the back.
Our architect and engineer is started plans and permits and we should close escrow around the end of January.
Wish us luck, this should be a meaty deal!