First Flip - How much is too much?

[April VanCleve]

Lets say my first potential flip is from 1900's, has 4 layers of roof shingles, outdated electrical, needs a new kitchen, plaster down/drywall up throughout the house, flooring, and a terrible, terrible foundation. If we buy right, how much is too much for a first timer when it comes to risk alone? 

[Andy Sabisch]

Foundation issues as others have said would be red flag for us . . . often the estimates are low and unexpected overages can sink a flip (holding costs will eat you alive).  Unless you are getting a heck of a deal I would recommend avoiding a foundation issue property until you have a team of contractors that you can count on and can find out what the repairs would run.  The rest of the repairs you can budget with a decent confidence but foundation issues can be a killer . . .we have passed on a few that in following up with the eventual buyer turned out to spot on as the cost was more than double the estimate in 3 cases.