A Trade-Do up OR A S.L.O -- HELP!

[Orkibi]

Hi Frinds

Im looking on a deal and need advice which way to go.

It is a private Estate sale.
House is vacant for 18 months.good location
Very old Dwelling-pre 1914 ,2b tiny bath and kitchen, + Sleep out-very small, it is like an old narrow shed.
asbestos roof ( builder say $10.000-$15.000 max to replace) section over grown clearance $1000.
Detached garage

Now ,"Vendor hoping to start negotiation at $120.000"
tidy houses (2B)in the area sale for 120.000 - 150.000
rent 110-150pw.

R.V $70,000

Only 1 wood burner .
the property will be ideal as a holiday house.

For a S.L.O deal : considering the state of the house ther is work to do on it to make it liveable or attractive for Rent to Buy .

For a trade :how much should we offer considering the work that the house need.?


Any advice will be appreciated

Cheers
Hadar

PS . the property is in a small town in Otago.

[Orkibi]

thanks Rosco.

I just had a good look at Rosco's Thread.

"Do people know how to calculate the profit on a trade? How much profit should you ma "

I Put some numbers together and it looks like I should pay 75k-80kmax for this property and spend on it 15K + holding cost.

If it sales for $145.000
that should geev a profit after tax of aprox 20K . It looks like it works better with 100% finance ?

I should go and have another look tomorrow.

good night
H

[Jumpin]

Pre 1914? I would guess electrics, plumbing, etc need a bit of work. Would it be better to rip it down and put a new dwelling on site?

[Orkibi]

Hi Jumpin,
As for my Un convetionall eye the electric and plumbing looks OK , in good nick , A building inspector will geev the verdict,

the "Residential dweling pre 1914 " mention in QV info.
The titel issued on 1972.

Im placing a very low offer conditional on the B report, Im communicating with the vendor.

Cheers

Hadar