I'm looking at a house owned by a local remodeler. He buys houses with cash, fixes them up and rents them. He's getting tired of the landlord trap, and we got into a discussion about a house he's in the process of remodeling. I drove by and peeked in the windows, the inside looks like a brand new house including kitchen cabinets, counter tops etc. I assume the outside will look as nice once he's done.
So is start comping the house, and I'm finding it difficult to take the houses condition into consideration. I'm sure most of the recently sold houses weren't as nice as this house, but they are coming up around $25k-$30k, and the remodeler mention off the cuff he'd like to get $50K for the house, but it's negotiable.
Another thing that is causing me some issue is the age of the house. It was originally built in 1940. Alot of the houses in the area are approximately that old, including some of the comps I pulled dating as far back as 1920. So my question is how much emphases should I put on the age of the house? And now that I know about how much similar sized houses were going for, how do I plug the "niceness" of the house into the equation?
When he's done, the house is going to look almost brand new, so should I be comparing it to houses built in the last 10 years? Or do I need to focus on the 60-80 year old houses?
Thank guys and gals, have a great weekend,
Mike.
