My first deal or keep looking

[Thomas LeBlanc]

Alrighty - So i've been studying up on REI for a while and am eager to get my feet wet. Based on my current reality any deals I do in my area are going to have to be creatively financed. I currently have a few interested parties in lending here and am working to expand that network. Median home price here is around $675k.

The strategy I am looking to execute is to find a fixer upper with an additional dwelling unit/or granny as they call them here. Ideally I would move into the granny, rent the home, live for cheap as possible. From there I think the strategy is to do a few out of state flips or BRRR's in much more approachable markets. Once a few of these have been completed and funds have built up, more Single family/duplex/triplex rentals. From there the sky is the limit.

So back to the deal:  I found a 3 BDR 1 Bath with detached Granny unit and 1 room cabin. It is in need of some serious repair, both inside and on the landscape. It's got some termites and dry rot issues.  Probably needs new siding, possibly windows or at least a recaulking  possibly a roof.  In addition it needs some cosmetic fixes like carpets, hardwood floors, painting, and appliances.  It is on a steep slope and will need a bit of thinning in the woods as well as a few retaining walls replaced.

The asking price is 599k, lowered from 739k.  Homes in good condition in the area have sold from 600k to into the millions in the last 180 days.  This property has been on the market about 6 months.  The market here hit an all time high a few months ago and has started to come down a bit with more inventory available at this time than is common for this time of year.  I am slightly worried prices are going to come down more and more, but who can really time a market?

Would it be foolhardy to make a very low offer on this place?  I need more information about the costs of the repairs this place needs but I could see this as being profitable if I could acquire it cheap enough.  Part of me wants to offer something like 380k, part of me is completely overwhelmed by the amount of work this is going to need.

Any thoughts, feedback, or more questions I should be asking would be appreciated