Property from a forced sale + renovation, assessment

Good day esteemed experienced ones.

I, a middle-aged (lower 30s) employee with an average income working in shifts 25xx - 3xxx net, am considering acquiring a property from a partition auction to dissolve a community of heirs. Financially, I would like to use the security deposit as equity and finance the rest through the bank.

This is a settlement house with ~95 sqm living space (4 rooms + 2 bathrooms) on 1.5 floors (ground floor + attic) built in 1968 with an appraised market value of €70k according to the expert report. The plot is quite small and manageable at 249 sqm, but the house needs a complete renovation.

Where do I best start… the report was created in February 2019 and the house was inspected both inside and outside.

According to the report, there are no indications of dry rot infestation in the house. Likewise, no official building authority restrictions or complaints were found. There are no rental or lease agreements, and no energy certificate is available.

Supply connections electricity & water from public utilities, as well as sewer connection. No known contamination according to the land register excerpt.

Facade - plaster facade
Construction type - solid construction
Foundations - presumably strip foundations
Basement walls - solid basement
Enclosing walls - presumably masonry walls
Floor ceilings - solid ceilings above basement, presumably wooden beam ceiling above ground floor
Stairs - solid, stairs with carpet tread and riser coverings, pull-down attic ladder
Roof construction - gable roof without additions
Roof covering - concrete roof tiles without underlay
Windows - mostly wooden windows with double-glazed or single-glazed units, mostly roller shutters with belt drive
roof windows as metal single windows
Doors - front door as typical metal element from the time of construction with single-glazed glass inserts
interior doors as typical veneered standard doors from the time of construction, partly with glass inserts
Outdoor facilities - supply and drainage systems from house connection to public network, fencing, patio with simple roofing

Walls/Ceilings - mostly plaster/wallpaper in living rooms, ceilings plaster with paint

Heating - no central heating, oil-fired individual stoves without central oil supply, one room on the ground floor and the attic rooms
without heating option

Hot water supply - decentralized via electric water heaters, no hot water supply for the bathtub on the ground floor
bathroom, hot water supply for the bathtub in the attic via solid fuel water heater

Electrical installation - typical equipment for the time of construction, electrical service connection via rooftop mast

The expert has identified the following maintenance backlogs:

Ground floor - bathroom – bathtub with defective drain and without hot water heater
1 room without heating
Attic floor - 2 rooms without heating
Basement floor - moisture penetration with plaster flaking on exterior walls
PVC tile flooring damaged
Garage - severe cracking in walls and floor
leaks in roof area
roof covering made of fiber cement corrugated sheets

I hope that was not too much text… I tried to extract the most important from the report.

I think the main issue is clearly the renovation and somewhat also my perplexity, since no company/advisor is willing to help me even remotely with a rough cost overview, I am basically asking you here for support.

I would like to carry out the following renovation measures on this house:
- Insulation of the roof including new roofing + (if financially feasible installation) of a photovoltaic system + battery (roof slopes -> east/west)
- Renewal of water pipes including sewer pipes.
- Installation of a central heating system, a floor heating system is desired due to the generally limited living space.
Installation of a gas boiler would be possible here, but the gas connection would have to be laid first. (Availability exists)
A heat pump is desired but I have no cost overview at all.
- Replacement of all windows with double-glazed plastic windows
- Insulation of the basement ceiling
- Renewal of electrical installation + LAN & SAT sockets in the rooms.
- Bathroom renovation ground floor + upper floor with walk-in shower, toilet, and washbasin.
- Hot water supply via the central heating + solar thermal (would be desired)

Since I am quite inexperienced, I guess my planned budget of €150k for the renovation will probably not be sufficient.
I would like to avoid facade insulation or basement drying. (The basement will not be inhabited)

I have uploaded a few pictures; I hope they provide some insight.
The house is currently still inhabited, the occupant is known, but there is no viewing possibility and thus unfortunately no opportunity to bring in an expert/advisor.

I have already spoken with my bank regarding financing, as the whole topic of bidding and then renovating is quite separated in time.
I must mention that I might not live in the house alone; I will basically "open" a shared flat and thus reduce the financing rate.
According to the house bank, this is not a problem as long as I receive the bid; I can initiate financing of the detached house and later add the renovation costs in connection with an energy consultant including KfW funding to the financing.

I would also like to contribute as little equity as possible (except for the security deposit), since I want to use the existing equity as a buffer for "contingencies"; 25k are immediately available and in an emergency another approx. 30k could be released from funds (should be avoided). Furthermore, painting work and floor coverings must also be done in such a house.

I hope I have not overwhelmed you with too much text or violated any rules.

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70k purchase price and 150k renovation in top ? Does that mean there is nothing for 220k in your region ? Can you reach an agreement before the foreclosure sale ? Basically, you should talk to your bank 200% renovation above the purchase price is not accepted by everyone

So I had a phone call with the financing department of my house bank (ING) and also gave them my exact estimates regarding the renovation work (complete renovation). He said that this would not be a problem since they often work with KFW there, and he also immediately said that an energy consultant would be advisable. I just don't have anything in writing...

And well, there is relatively rarely anything for 220k here that wouldn't need at least renovation if not even complete renovation.

I will drive to the district court this Thursday to watch such an auction.

May I honestly tell you something about that? If you have to have all that done, it will be too expensive. Your 150 can easily become 200. Plus 70 acquisition costs plus additional costs. The house is interesting for craftsmen. Or for really shady guys who do almost nothing there and rent it out to Romanians or something. Or set up a brothel in it or whatever.

May I honestly tell you something about this? If you have to have all that done, it will be too expensive. Your 150, that can easily become 200. Plus 70 purchase plus additional costs. The house is interesting for craftsmen. Or for really sleazy guys who barely do anything there and rent it out to Romanians or something. Or set up a brothel in there or whatever.

That means brothel ...

from the year of construction 1968 [...] Heating - no central heating, oil-fired individual stoves without central oil supply,

In this context I see

Electrical installation - normal typical equipment of the construction period

actually limited at most to the electrics.

I must note here that I might not live in the house alone, I will practically "open" a shared flat?

I see an added dormer in the attic for a second bathroom becoming necessary, otherwise it will truly be a shared flat in the communal sense of the construction year

Since I am quite clumsy I estimate that my planned budget of 150k € for the renovation will probably not be enough.

Under these circumstances, I do not see you adequately qualified for the condition of the property to strongly tackle the "muscle mortgage." It seems to me you are naively approaching the value of what may still look like a house on the patient paper. However, your description reads more like 1. after disposal there will be more (mixed, accordingly expensive to dispose) rubble than could fill the basement over both ears; 2. what remains would be a used shell building, whose price difference to a new shell building of the same size will not justify the effort for careful demolition. Even if you are a knight without fear or reproach and already carried the nickname "Raboti" at school: forget this kamikaze project!