First rehab project

[Kari R.]

So I may have an opportunity to get a great deal on a house but it needs A LOT of work...I mean a lot, its been vacant for 20+ years. I am new to the REI industry and this would be my first flip. Anyone have any advice on taking on a major rehab for your first project? I just have a feeling it is going to be the right deal to take on, but I am worried about all the work that will be needed.

Also, how do you feel about a mentor with rehab deals? Should I try and find a mentor to work with on my first couple of deals, or just take on the project myself? Advice is much appreciated. :)

[Kari R.]

@Kenneth Shelley

Thanks for checking in! I am officially the owner of the property now. I'm currently working with an architect to get some plans drawn up. Its going to be a full gut with an addition added, so a big project. I have a mentor and a partner that will be a huge help, since this is my first rehabbing venture. :)

Here are my numbers -

Purchase price - $150,000

Rehab - $150,000

ARV - $400-$450,000

I am doing seller financing with a 4.5% rate...pretty sweet!

The property is actually in pretty darn good condition for being vacant for so long. Everyone that sees it is completely blown away by the condition...but it has been taken care of through the years, so that has definitely helped.

I am very excited to get construction under way and hope to have a completion date of around June, or July at the latest.