I'm taking the leap, what now?

[Benjamin Molnar]

Thanks to BP's podcasts and forums, I'm currently under contract for a two-family home in Weehawken, NJ. It's my first home purchase and I'm very excited. I've got a great view of Midtown at the end of the street and I have easy access to the Lincoln Tunnel which I need to use to get to the office and to customers when I'm not working from home. That being said, if you know the area you know that I'm breaking every rule I've come across since joining this site. I'm also going VA so my LTV is probably going to be a little north of 100%

Despite this, the downstairs unit has been rehabbed to about 80% and is currently bringing in around $100/day on AirBnB according to the sellers.  Just a private room goes for about $80-130 a day from what I've seen so that may even be low.  Based on the rental comps in the neighborhood, I will be able to rent long-term or do AirBnB and still end up paying less for the mortgage than what I am currently paying in rent.

The only issue that remains is that there is some hair on it.  The structure and flooring is solid but there are smatterings of asbestos pipe insulation and knob and tube remnants in the basement.  I've got multiple drywall repairs to do.  Sub-standard fusing and non-compliant outlets.  The roof is new but I am working on getting a credit from the buyer to fix the roof overhang that is leaking on the steps.  I need to do a new bathroom and kitchen upstairs where I and my girlfriend will be living.  All of this with the exception of the roof overhang and the step mortar, I can do myself.  I mostly work from home so this grants me some flexibility on what I work on during the day versus what I do at night.  If you knew me you'd know that I've been living the 10X rule long before I found out about Grant Cardone on the podcast.  I will get this done - keep my job and my girlfriend - and it's going to be amazing.

So.  Based on this information, should I try to go for a quick flip in a market where there is very low inventory?  I should add that there are a number of rehabs underway on the same street/block.  Or should I fix what I can, raise the value of the house and take out value to purchase another property where the numbers make a little more sense?  I have to be close to the city so there's no way I'm getting around paying a lot for rent and it pains me to pay what I'm paying in this area but it would be great to increase my working capital from a flip.

I have pretty much made up my mind on what I'm going to do but I always appreciate the colorful debate on BP.  Any and all advice is very much appreciated!

Benjamin

p.s. I will be starting a blog to document the rehab process.  I'll be updating my signature with that once I've closed.