First flip - too much work??!

[Jessica Vanderveen]

Hello! I just put an offer in on my first investment property. We just had the home inspection and there are a lot of major things wrong with it - needs a new roof, new windows, has rotting support posts, asbestos, knob and tube wiring, needs new septic. This would be a total gut job and put everything back together.

It's a century home and the foundation and structure is good. It has beautiful high ceilings and original trim and doors, and a great layout. Great location too just outside of the city, and I know it could be a beautiful family home. 

Here are a few numbers: ARV 350K. Renovations ~200K. We're hoping to get the price down to 50K.

Would you do it??

[Sara C.]

Congrats that you are getting started!! If you get it down to $50K the numbers sound like they could work (not sure about your holding costs).  Are you pretty comfortable with rehabbing? That's a big budget and sounds like a lot of work. Looking back on my first flip, it was all cosmetic updates and I spent about $40K on the rehab, and I was pretty comfortable with that. I don't want to discourage you though because it's awesome you're jumping in! I would just think about how comfortable you are with that big of a rehab budget and to make sure the profit is enough to balance out the risk.