High end fix and flip opportunity

[Jason Phillips]

I have the opportunity to purchase a foreclosed home in a VERY nice neighborhood. However, the asking price is 500k plus and the house has a horrible floor plan so I am thinking I will need an architect. Anyway, I am estimating around 200k in rehab but an ARV of 875k to 975k. This will be my first flip and I am scared to death. Any encouragement or warnings?

[Sri Voodi]

Originally posted by @Jason Phillips:

I have the opportunity to purchase a foreclosed home in a VERY nice neighborhood. However, the asking price is 500k plus and the house has a horrible floor plan so I am thinking I will need an architect. Anyway, I am estimating around 200k in rehab but an ARV of 875k to 975k. This will be my first flip and I am scared to death. Any encouragement or warnings?

 Jason, 

Congratulations. Go ahead and get this thing done. No matter what others tell you. IF NOT NOW THEN WHEN. I know it is risky and you are catering to a very few audience. If you can make a break even, I would think you made it great. The lessons learnt would be all worth it. As I always say - ALL IT TAKES IS A BUYER and you will find one. 

And don't cut corners on the quality, high end buyers are very picky and rightfully so. Being your first project, let the GC take care of the whole process. But your main role would be to document every little damn thing. After the completion of the project, if you read thru the documentation (excel - whatever) it should tell a story of how it started, all the twists and turns and how well or badly it ended. Now you a have a recipe of Do's and Dont's for your next project. My only concern is hard money and the holding costs - keep an eye on them

Good luck and keep the forum posted how things are moving periodically. YOU CAN DO IT