When is a home not worth the Time or Money to repair?

[Daniel R Jenkins]

I've found a home that is in very bad shape. The bones are good but will need a complete re-do. It may still work if I can buy for the right price.  Is it worth it? Does anyone have advice on how to shorten the repair process or better estimate costs?

[Karen O.]

As a newbie, if you're a newbie, you should become familiar with J.Scott's book on estimating rehab costs.  

If this is the first time you're attempting such a project, you might want to consider partnering with someone who has done it before.  Sharing such a big project and working alongside a seasoned flipper would be worth its weight in gold.    

Finally, if this is truly your first project, 6 months isn't a long time to do a complete rehab of a house that has good bones. Don't believe what they show on TV. You may need to find a great GC as well as other trades (elec, plumbing, roofing, etc). You'll need to obtain empty house insurance, pay local property taxes, if any and get utilities turned on.  You may need to pull permits. As we barrel toward winter, you may have weather issues to deal with. There will be plenty of $ flowing out before you'll be collecting rent from a tenant.  

In short, the house needs what it needs. If you're not prepared to do whatever it takes, then pass on it and seek out a less involved first project. Something that requires just a bit of polishing. Then graduate to a bigger, more complex projects such as the one you describe. With each project, you gain knowledge that will help you with the next.  

Whatever you decide, best of luck.