My First Purchase As a Flip

[Michael Cinelli]

My name's Michael. I've been just getting started in the whole prospect of real estate investing only a few months now, so I'm very new and ambitious. 22, full time salesman at a furniture and flooring store in Massachusetts but I've only been here for a few months as well so the plan was wait until I've been here at least a year and save up that 3.5% to house hack a duplex in the area. Then an offer sort of fell in my lap.

I strongly believe in the notion of creating your own luck through mentioning what you're all about to everyone you come across. Sure enough a friend of the family is in the process of packing up their lives and moving to another part of the country to retire. They're selling several beautiful homes. One of these homes she is offering to me for well below its last estimated value. She directly told me to try to flip the house for it's actual worth and get my start in real estate.

So I'm here asking for any advice, thoughts, concerns, etc. And I'll share the details below.

I'm going to go into this co-signing with a family member. Personally I have good credit around 720-740 and pretty minimal debt considering most peoples circumstances. My expenses monthly are about $600 and I'm on track to be making 40-50k a year at my new line of work. Being a new line of work and being 100% commission, I can't use this as a source of income for a home, hence the co-signer.

The home is a lake-side property. 1.93 Acres of land, 1419sq.ft. single family home with 3 beds, 2 baths. Zillow last estimated the home value at $387,528. The yearly taxes for 2018 were $4,202 of a tax estimate of $386,600. It's a Ranch style home with a partial basement, forced air heating, built in the 60's. (I'm from the hill-towns this place is located in and that's not uncommon for it to be so old.)

There are homes in the area that come close in square footage and have sold recently for over $300,000 that are not lake-side and have less total property in terms of Acres. Other homes in the area, however have less property size but a higher square footage and have sold recently in the $200,000-$300,000 range. 

The Seller says the house may need a little TLC but "more time than money." And here's the kicker: She came out and made an offer to me for $150,000!!

I'm going to look at the house tomorrow in person with the co-signer. I'm planning on paying for an appraisal and inspection before we close or maybe even get into negotiations. I'm willing to put in the TLC and I understand that home purchases may be slow during the winter, which is coming, so I'm prepared for a good few months of holding costs.

So, thoughts? Just of this pretty minimal information could this be a lucky break? If so what could I expect to maybe profit off this? (The co-signer bringing the money only wants to be reimbursed for the amount he puts in and claims to want no profit for himself) How long might it take to sell it with and without repair work? What am I not considering?

I really appreciate any responses!