Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 5 years ago, 09/20/2019

User Stats

20
Posts
16
Votes
Jake Lord
  • Rental Property Investor
  • Lehigh Valley // North Jersey // Binghamton, NY
16
Votes |
20
Posts

First Deal Gone Wrong

Jake Lord
  • Rental Property Investor
  • Lehigh Valley // North Jersey // Binghamton, NY
Posted

Hello all,


A business partner and I have found ourselves in a pickle with a single-family rehab project that we are looking to flip on the backend. This is a 3 bed 2 bath home that we found on Craigslist and purchased directly from an owner who was originally planning to flip the property himself.

The problem with this one is, the house is in really bad shape and needs much more work than we originally expected. Being first-time investors, we had connected with a contractor to do the work and came to find out on the day we got the contract that he was unlicensed and did not have insurance, etc.

Our inspection contingency period was 10 days with a 3-day contingency following receiving the inspection report. During that time, we continued to try and figure out how to make the deal work and not back out, so we overran the contingency.

Currently, we are in limbo waiting for the title search to come back before we close. However chances are, we will be contractly obligated to move forward with this one, so we need to make it work. It would be great to get everyone's opinion on how they would best go about making the most of this deal.

Here are the numbers for your reference:

- purchase price: $25,500

- estimated repair cost: $40-70K

- taxes: ~$4,250

- expenses: no legal fees (family is lawyer), inspection = $450, title search = $700; cash offer out of pocket, so no interest on a loan

- estimated ARV: ~$100k (conservatively high)

- down payment: $9,000 (yes, you read that right. why did we put $9,000 down? great question, who knows.)

Let me know if you'd like any more information. Thanks!

Loading replies...