First buy and flip yay or nay?

[Jathiyah L.]

My husband and I bid on a foreclosure in auction terms for 25k in buffalo area. There is 2k buyers premium, first year taxes and closing costs. We had a house inspector who was a contractor for 25 years do the inspection. Well recieve the full report tommorow, but the major issues found were

- water puddles in yard-waterproofing/basement company needed

- patch work plus shingle job on roof (we have a family member to do the roof at a good price) 

- water and some mold in crawl space and some rotted wood on foundation 

- foundation issues: put on wood instead of cement 

He gave us a rough estimate of about 25-30k. My husband believes we can get it done for 15k with our resources. Houses in this neighborhood  go from 80-95k

Do you think we should take on the project? 

[Terry Beall]

Yes, I would go with the contractor's numbers, but would really want to refine them some.  I always add 20% to the costs because there could be a nasty issue pop its ugly head.  My first thought on puddles of water in the yard, was septic problems, which in Maryland could cost you thousands of dollars, not sure in NY.

I wish you the best, let us know how it comes out!  take care,