My first potential deal

[Steven Crawford]

I recently came across a deal that have a crack foundation. Rehab cost of 50k. The asking price is around $230,000 o.b.o in an area where most home go for $400,000 - $500,000. 

The seller seem to be motivate to sale.  I am working on get this home under contract the only problem is that I am new. I have not done all my home yet and I am seeking some advice before I start digging into this project. I know  I need comps and so on. What would before way to obtain all the information I need. Is it smart to chase after a house with a crack foundation?

Any advice would be helpful.

Thank you for reading.

Steven Crawford

[Jean Bolger]

You should probably get a local referral or two to someone who specializes in foundation repair, then get them to inspect the property and give you a quote (and you'll get some education as well!) You could do this before you make an offer or you could try to get it it under contract with an inspection contingency and then negotiate (or bail) if needed once you know the full costs of fixing the foundation. 

Many investors are (rightly) afraid of dealing with foundation issues so it can actually be a profitable niche once you learn what you're doing -- and if you have a super competent foundation repair company that you can work with.

Some end buyers will be leery of a place that has had foundation issues, even if they've been properly repaired. Make sure you're taking that into consideration when you determine your final ARV -- you might want to estimate a bit on the low side so you don't get caught out.