Buying to buy a new unfinished new construction - any advice?

[Harry Lin]

Hi All--

I saw a property listed for $500K with an AVR of ~800K. The owner started the construction in 2016 and have had issues with multiple contractors, and had enough at this point. Owner just want to sell it.

I am a newbie with zero experience in BRRRR but based on my estimates, I think repairs are like close to 200K. I will definitely ask for quotes from contractors.

The property rents for $4K / month after its ready.

From the pictures, it looks like all the foundation/framing is done and water/electric is set up with no equipment.

Everything else is not done - meaning if go inside the house, all you see is wood frames/trusses.

Is this too big of a project for an first time investor? I am thinking of $400K offer via conventional mortgage. Would hard money or private lender be better?

Any advice is appreciated. Thank you.