good deal or bad deal?

[Mark Brazier]

There is a property I'm currently interested in and I'm wondering if I can get some opinions. It is on a main road in a smaller town so it is busy but not too busy. Every house on the road which is about 50 homes are occupied and I am being told by my uneducated opinionated step father that he thinks it is a terrible investment. 

But here are the numbers. I intend on offering 75k and paying no more than 85k. It needs 40k-60k repairs worst case scenario. My total investment including purchase price into the property will be a maximum of about 140k. The ARV is 190k-210k leaving me with 50-70k equity in the property. I plan to refinance and put up for sale. What could be wrong with this deal?

[Mark Brazier]

So here's an update! I purchased a property for 137k with a 26k rehab budget and will list for 220k The great news is that based on the circumstances of the property I was able to make 28k in the buy! in 2014 the property was sold for 165k but the previous home owners just abandoned the place and left the private mortgage holder with the expenses. He wasn't too upset to let it go for 137k. 

This is mine and my partners first rehab but so far so good. We have learned a fair bit about rehab expenses and management and we can see the light! @Steve Vaughan