Long post sorry! DP and I have seen this house and fallen in love with it completely...
It's an auction property, guide price 120-140k.
It's a 4-bed Victorian town house, with a 1-bed flat underneath, previous owner moved into the flat in the 90s when her husband died and has done nothing since then, so the flat is in an alright state (bit dated and needs a new kitchen) but the house is terrible, there are holes/pigeons etc. needs new windows, roof fixing, guttering, wiring, boiler etc. and all the cosmetic stuff (carpets/lights etc). There is also no bathroom (no idea how they washed!).
We each own a property now, mine is rented and we live in DP's. The plan would be to remortgage both and use our savings to buy this house, first do up the flat, then move in there and rent DP's house too while we do up the main house, then eventually move in there and rent the flat.
So 2 questions:
- Are we mad to consider taking this on? We can afford the house and the basic fixes (would probably have about 25k to do the essential stuff like fixing the flat and making the house watertight). We're pretty handy so all the painting/sanding/flooring/tiling etc we'd do ourselves.
- How do we know what price it'd go for? My house 3 years ago was 120k in this area, but it's a tiny 2-bed terrace, and only needed the cosmetic stuff doing. We could afford to bid 250k (which would leave enough for legal fees, stamp duty, and leaving 25k ish to do up).