Possible first deal?

[Kenneth Hadinoto]

Hi BP community.  I was looking at a property that is going for 200K.  My agent looked into it and told me that it needed a lot of major work. (roof, septic)  Rehab will be around 100K.  He told me I wasn't able to get a conventional loan, but might be able to go through another lender.  I would need to come up with 60-70K down.  Not sure if this is something I need to tackle as a new investor, or should I keep looking?  The comps in the area have sold between 380K - 420K.

[Bryan Devitt]

I would be very worried about dumping $300k(+) into a property that won't be done for many months right now. What are the chances it doesn't appraise when it is done? What if the realtor missed something it and costs $150k and 6 months to finish? What do your carrying costs look like for that? How much has the area depreciated in the last 6 months? How much will it depreciate in the next 6 months? Is this a flip or a BRRRR? If BRRRR what will rates be in 6 months when you refi? I personally am not pulling the trigger on anything that isn't a grand slam for a BRRRR or a 2 month rehab on a flip. The market is too volatile to take risks when you don't have enough capital to eat $50k if you need to