Help with First (Maybe) Deal

[Jamie Rost]

Hoping to get some advice on a potential deal. 

A little background 

I am just starting out 

I have some money to invest but not enough to fund the entire deal but could likely fund rehab and afford holding costs. 

From what I know unless I am missing something this does not appear to be a great deal for Flip, BRRR, or wholesale but I think there is some opportunity I may not be aware of.

Backstory

A neighbor in my mother-in-laws neighborhood fell into hard times and will be letting the home go into foreclosure. I spoke with him and he would rather not let it go into foreclosure but does really not have any options. 

Home Condition

I was able to tour the home and observed the following

• Outside needs paint
• Garage door needs paint or replacement
• Electrical panel needs to be updated 
• Landscaping is Meh but lawn is manicured 
• Roof needs replaced
• Interior needs full paint
• Bathrooms do not need to be updated
• HVAC is 2 years old with warranty 
• Does not appear to have any leaks based on ceiling
• Many different floor types from room to room 
• Windows are old but do not appear to be leaking 
• observed one small area of roof rot by the fascia by the porch 
• Front door needs replaced
• Popcorn ceiling 
• Some drywall repair
• Kitchen cabinets painted (not very well) 
• Countertops Formica in good condition
• Appliances need to be replaced 

Numbers

• Home is a 3/2 1500sq feet on 1/4 acre built in the 60s I would guess 
• Comps in the neighborhood are high $180s but our market is declining somewhat ( I would imagine ARV at the time of completion may be $165k due to size and the neighborhood would be a solid C maybe low B
• Owner currently owes the bank $124k
• I am estimating rehab costs to range from $30k-$40k (if I do some of the work myself it would be closer to $30k I think

Strategies 

• Flip - I think the margins are too low even at the high end of current sales at 180k
• BRR - I don’t think I can get my money back out if I refinance at 70%
• Buy and Hold -  I think current market rents would be $1375-1450 cash flow about $250 if I don’t go full rehab and just go rent ready and self manage

I am thinking that it is not a great deal with any of the common strategies listed above but it seems at that price there may be something I am not thinking of . I really just wanted to verify before I pass to make sure I am not missing anything.

Thank you for any advice you can offer

Jamie R (Florida)