Great wholesaling opportunity or bust?

[Kelli Vissers]

Hi all!

I would like to start out by saying that I am a new investor. I have dabbled in real estate for several years, but have never taken it too seriously until this point. I have purchased a few no money down properties over the years and it was surprisingly easier than I imagined. On the other hand, this is the first time I am trying to dive into wholesaling and I have never purchased a rehab. I would like to know if anyone could lend some advice on the following deal to let me know if it is a wise decision or not. My gut says yes, but because it is a major rehab, I am questioning my logic!

The property I found is in a great rural location, has bay views and could be used for many things, including a B&B, as it is already zoned residential/commercial. However, it is a TOTAL rehab, needs to be gutted and restored IN ENTIRETY. I am meeting with the guy tomorrow morning and can NO DOUBT get it under contract, he is already open to it after our conversation this morning. He only wants $9500 for it. He has owned it for 45 years and just wants to get rid of it. He hasn't lived in it for a long time and it is quite a dump and I've only seen the outside thus far. I am assuming it has mold issues from the looks of the exterior (gaping hole in the exterior wall), and it is just plain gross. It will no doubt have to be torn down to the studs and redone, in and out. It is a 3 bed 1 bath house with an attached HUGE garage that can fit 8 or 9 cars. Now, my brain says for $9500, I would be an idiot not to get it under contract and then try to flip it, but at the same time I am wondering..would anyone want it? Am I wasting my time? I would think that anyone familiar with this area would understand the potential value. Because of the location, it would be worth a pretty penny if it was fully restored. I don't have anything to lose right? Am I just a scared newbie? Comments would be greatly appreciated!!! Thanks so much for reading my long-winded post!

Kelli