newbie and full gut property

[Edickson Then]

hello from new york city. new to the site and to RE investing. i have been reading on real state and trying to diggest as much info as i can. i have been looking at a foreclosed property that seems to be a steal at the listed price (i think will sell for much more). the agent told me it needs full gut. would it be a good idea for a complete noob to take such advance job?

[Andrew Johnson]

Edickson Then Short answer, for you there's outsized risk so there has better be an outsized reward. New York is also a competitive market and it's not like there is a shortage of investors with rehab-down-to-the-studs experience. The "deal" also isn't secret so there's an element of the free market at play. If those investors (or investment groups) with directly-applicable experience aren't going to outbid you, what do they know that you don't? Are you happier with a slimmer profit margin? Are you able to put in the sweat equity? Can you the longer carrying costs that typically come with sweat equity? Can you financially handle it if the rehab is more expensive than your budget? I won't necessary say it's a bad idea. But it should be considered an educated risk.