Good Bones, Bad Comps and to top it off...

[Brian Loper]

Hi All,

I'm having some newbie issues and wanting to know if I still need to work on changing my thinking as an investor.

I found a house on the mls (trying to find off market properties but it's been a slow proces) that is in a good area, the bones of the house are solid with mostly cosmetic updates needed but I can't find any good comps. My agent advised there is not much in that neighborhood like this home. It's a 3/3 split level on a great lot, 2200sq ft. An elderly person was living there so although the kids kept the essentials very nice the rest is a time capsule. It's listed at $345k. It needs about $80k for the big ticket items, kitchen, 3 full baths, siding and central air! The agent said fixed up should be good in the low $500k range. Based on the BP Calc, I can make $40k with nearly all holding costs factored in if I buy at $330k.

The comps on the high side are $600k and up and all have 4-6 bds. I can create a single additional bd but no more. The comps on the low end are in the mid to upper $300k range but they are 1000sq ft smaller, less a bathroom or two. To top it off I really like the house. I'm trying to be objective here and rational oh and did I mention it would be my first flip. Property is in central nj. 

Any ideas or comments are welcome. I know I have a lot to learn. Thanks!