Too Crazy For a First Deal???

[Robert Parks]

I found an end unit town home, that is in need of a total rehab (it just hit the market this week). It had a pipe burst (already repaired, so they say) in the 2nd floor bathroom and there is mold, more than likely black mold throughout.

It has already been stripped down to the subfloor and studs on the walls & ceilings. (thanks for reducing my demo costs). It is a bank owned property, asking 50k. I estimate 45,000 to bring it back to life. Houses on the same block have been selling for 155-165k in the last year. Taxes are 1600 a year and no HOA. This would be an all cash deal, thinking of offering 40k and seeing what the bank says.

My other half thinks its too big of a project to take on for our first flip. I'm all for it. Any suggestions/tips to get her onboard? Has anyone else done a full gut on their first deal?

[Ophelia Nicholson]

Our very first rehab back in 2011 was down to the studs- 3 levels. The only thing we didn't replace on that house was the roof. However the rehab cost was way higher than your estimate and the general contractor was my business partner/uncle.

I'm not sure what costs are in PA however you might be underestimating. I agree with previous poster you need to get multiple estimates from contractors as to the rehab costs before you take on this project.