Possible 40,000 brrrr deal

[Ian Goff]

Hey BP forums, I recently found a deal in a smaller town in Eastern New Mexico that I need some help in. The basics of the house are it's listed for 48,000 and 3 bedrooms 1 bath 1,700 sqft with no garage. It's in a D-/C neighborhood. The same neighborhood currently has 4 similar style remodeled homes for sale for 90,000+/-5,000. The home was foreclosed on and has been on market for 42 days. I estimated the numbers here 

Purchase: 38,000(assuming I can get it for this price

Down payment/closing costs: 10,000

Rehab: 20,000(some examples of what I would do)

-paint

-fixtures

-ceiling fans

-baseboards

-front door

-granite

-backsplash

-appliances

Total in: 58,000

ARV: 90,000

Even if I try to sell at 90,000 and don't get any offers would it be bad idea to lower the price to 75,000 to try to force a quick sale?

My biggest concern is the town I live in isn't very big so it can be pretty competitive.  

[Jason D.]

@Ian Goff yes, you would have to refinance to pay them back, that's why you need to have confidence in your ARV. I would rethink your rehab if you are thinking rental. There is no need for higher end stuff in a $750 rental. Forget granite, backsplash, baseboards (unless they're missing), etc. My biggest mistake on my first BRRRR was over renovating. In my current BRRRR ($1200 rent) I'm doing laminate counters, basic white appliances, refinishing instead of replacing the tub, LVP floors, paint. I have a $10k budget for a 1000 sqft 3 bed 1 bath, and I may be a little under.