First Potential Deal Advice

[Austin Wylde]

Hello everyone! First time using the bigger pockets forums and I have a first time potential deal! Let me know what you think.

- One side of a duplex for sale: Seller is asking $180000

- Built in 1987, currently a 2 bed 2 bath

- needs cosmetic upgrades upstairs

- Basement is completely unfinished with great potential

- Its in an amazing/high value area 

- The seller is also selling the other side of the duplex more towards the spring, not on the market yet, however I would get first dibs to buy the second side according to the seller if I bought the 1st side.

My potential plan 

- Live and Flip

- Offer $155000 on it, most likely will negotiate to roughly $165,000

- Finish the basement, add 2 bedrooms and 2 bathrooms in the basement with new egress windows 

- Update the kitchen and bathrooms upstairs

- Most likely will get a 5% down payment (Primary Residence)

- I plan to do all the work myself, I am currently a plumber and am very mechanically inclined. 

- I estimate the the entire basement to cost $30,000 to finish

- $5000 upstairs to finish 

- With closing costs and commissions, the total capital I would need is $40,000

- After all repairs are made I would rent it out after a year of primary residence and most likely buy the second side of the duplex and either do the same process again or house hack 

- ARV would be easily $220,000 at least when viewing comps in the area.

- COC Return 7.6%

- It would rent for at least $2000

Problems 

- We only have $15000 to spare so I've been trying to come up with ways to find the extra money, I was thinking personal loans or no interest credit cards (for at least a year)

- We originally wanted to make this an investment property but were surprised with the required 15% down payment so that is why we are thinking of living and flipping.

Please please share as much advice as possible! I am so ready to have my financial freedom. Im ready to put in the work! So please let me know what y'all think. Is this a good deal?

Thanks, Austin

[Chris Svendsen]

Quote from @Michael Behr:

I would be Leary if he is only offering one side. I’m new but don’t think you can buy just one side 

Depends on how houses are deeded and area you in.  Some yes some know.