possible first investment help??

[Audrey Parzyk]

Hi all!

I'm new to bigger pockets and was going to get a little more education before jumping into any deals BUT I stumbled upon a house when doing a search for a client that I think will be a good start! I'm interested in doing buy and holds in Chicago and nearby suburbs. Any feedback about this deal would be much appreciated!

The property is a 3bed 1bath foreclosure listed for 125 being sold as is. In the suburbs in a top rated school district. It's obvious the owners were not happy about the situation and removed everything they could. Looks like some of the electric has been ripped out of the walls. It's pretty much a shell of a house and Just from the showing I can see the following repairs need to be made. Estimates are on the high side just to be safe. 

- total kitchen remodel $15-20K

-new washer/dryer $1500

- bathroom just needs cosmetic remodel 2K

- replace back door $500 (family member works for window and door company and gets a large discount)

- furnace is about 20 years old so would need to be replaced soon 3K

- possible rewiring of the house (worst case scenario) $7K

- repaint. Just pay materials as I have a family member that owns a painting business. 

- I was not able to see the condition of the roof or landscaping do to a recent snow storm. The plumbing has been winterized so I am also unsure if the previous owner did any damage to that.

- floors are either ceramic or wood and all in good condition

Similar homes that have recent updates have sold for 165-190 in the last 9 months. Taxes are 6,000. Rents for similar homes are 1300-1700. I am considering paying 100 at most due to all the work and time it would take to remodel. I would put down 40.

My questions are, are there any major items I have overlooked? Do banks give low mortgages for 60K or is that too low? Has anyone had issues with previous owners of foreclosures? Thanks for any feedback!