Found our first potential deal!

[Katharine Gonzalez]

Looking for any thoughts/comments/guidance/suggestions...thanks in advance!

My partners and I walked through a property this weekend that seems to be a good flip deal. The property is a foreclosed SFH listed last week @ $89K in a fairly sought-after suburban village. Nearest ARV comp sold Sept was a 2 BR 1BA 1846 Victorian which sold in 30 days for $185K. The specs:

1892 Old Style Colonial

4BR 1.5BA

1436 Sq Ft

Partial Unfinished Basement

Full Unfinished Walk-up Attic

We estimated approx. $70K in rehab on the high end which incl. labor (though we will be doing all except roofing, flooring, electrical, and plumbing). Brought my (retired carpenter/absentee landlord) dad and my handy-man partner to help with estimation. After physical walk-through we sat and discussed reno details/process, sub work, and tried crunching numbers (proving to be most challenging part). Finding a need for a comprehensive repair cost estimate sheet to account for work not on the one I'm currently using. Considering asking a couple of plumbers and electricians to walk site to provide written estimates on material and labor - wondering if they'd be amenable to the idea since we don't have title. My biggest concern is getting the numbers as reliable as possible and including a 10% contingency to avoid $$ problems down the line.

The property is being offered first to owner-occupants and then to investors in about 1-1/2 weeks. Going to meet with foreclosing bank (and local community bank if that doesn't work) to try to qualify for a purchase & renovate loan.  Concerned we may be short cash to finance and get out-bid.