First investment.. Not sure how to proceed

[Liz Lynn]

Hi everyone! I am looking into a property that is very interesting to me and would love y'all's input. It's been on market for 90+ days but has been overpriced. It has been droppings 30-40k per month, but the sellers aren't in a rush to sell it and don't want to lower further (according to the agent). It has an acre of land with a 4b3b house (2 bathrooms are unfinished), a studio casita with an unfinished bathroom, an unfinished garage and 2 unfinished workshops. It was listed with the 2200 square footage of the house only, not including the extra 500 sq ft that was added for the extra bath and utility room nor the casita or extra garage/workshops. With that finished the house would have 2 living ares, 2 beds with insuite baths, and 2 that share the bath in the hallway. Everything is outdated so I would need to rehab the kitchen, flooring, and other bathroom as well. All electric and plumbing seems to be in line, the roof doesn't look bad, the HVAC is broke but the window units work, and the foundation is iffy. The listing says it's slab, but it's clearly pier and beam. I saw a small crack in the ceiling, and a few big ones on the outside. 

So it looks like it will be a ton of work, but the ARV is looking to be higher up in 550k-700k because the area is great. It is in the medical center and it is in a fancier area of town. So I am thinking of a few different strategies. I could BRRRR it and get it fixed up while I live in it and then either sell or rent it out since the neighborhood is mostly rentals or open a dog boarding/daycare center (which is why I was looking at it originally), or I could wholesale it to a fixer upper. However, this is literally my first investment and I'm not sure if this is too much to take on as a beginner. I have been doing a lot of reading and watching youtubers, but I have been very nervous to actually get started bc of my lack of experience. I am working with a realtor who suggested getting a $350 inspection to see what all needs repairs, but I don't want to pay for it if it's not a good idea overall anyways. Thanks in advance y'all, I adore this community and please feel free to be blunt I really want some truthful advice.

[Jim Pellerin]

Quote from @Liz Lynn:

Hi everyone! I am looking into a property that is very interesting to me and would love y'all's input. It's been on market for 90+ days but has been overpriced. It has been droppings 30-40k per month, but the sellers aren't in a rush to sell it and don't want to lower further (according to the agent). It has an acre of land with a 4b3b house (2 bathrooms are unfinished), a studio casita with an unfinished bathroom, an unfinished garage and 2 unfinished workshops. It was listed with the 2200 square footage of the house only, not including the extra 500 sq ft that was added for the extra bath and utility room nor the casita or extra garage/workshops. With that finished the house would have 2 living ares, 2 beds with insuite baths, and 2 that share the bath in the hallway. Everything is outdated so I would need to rehab the kitchen, flooring, and other bathroom as well. All electric and plumbing seems to be in line, the roof doesn't look bad, the HVAC is broke but the window units work, and the foundation is iffy. The listing says it's slab, but it's clearly pier and beam. I saw a small crack in the ceiling, and a few big ones on the outside. 

So it looks like it will be a ton of work, but the ARV is looking to be higher up in 550k-700k because the area is great. It is in the medical center and it is in a fancier area of town. So I am thinking of a few different strategies. I could BRRRR it and get it fixed up while I live in it and then either sell or rent it out since the neighborhood is mostly rentals or open a dog boarding/daycare center (which is why I was looking at it originally), or I could wholesale it to a fixer upper. However, this is literally my first investment and I'm not sure if this is too much to take on as a beginner. I have been doing a lot of reading and watching youtubers, but I have been very nervous to actually get started bc of my lack of experience. I am working with a realtor who suggested getting a $350 inspection to see what all needs repairs, but I don't want to pay for it if it's not a good idea overall anyways. Thanks in advance y'all, I adore this community and please feel free to be blunt I really want some truthful advice.

If this is your first deal then I would wholesale it. There are a bunch of tools out there where you can lock down the ARV. Then apply the 70% rule and if you can get it for the recommended buying price/maximum allowable offer ( MAO), then it's a good deal for a flipper. Then just post it on the many FB groups in your area. Or find other wholesalers to jv with.