The Biggest Rehab Project of My Career - Should I Do This?

[Wendell De Guzman]

Yesterday I won a BID on an auction on a house in Lagrange IL.

The Good:

ARV - $1,000,000

Acquisition Price: $380,000

Repairs: $200,000

Profit Potential: HUGE - about $300,000 profit even if you assume 12 months holding cost

The Bad:

The house is a HISTORIC home. I have no experience renovating a historic home. I have not done such a big renovation project. Property taxes is over $20,000/year. So carrying cost is huge.

Also, the house is very unique for Chicago - Spanish Villa type home (stucco exterior) and the driveway is shared by three other houses. At one time, this was the only house in that subdivision perhaps and then the owner subdivided the lot into 3 other parcels.

So, BP rehabbers...

1. Anyone out there who has done a historic renovation project? I need your help. 

2. What are the things I should consider before I commit to doing this?

3. What are the risks and based on the numbers and other factors (described above), should I even do this project?

Any help, inputs, suggestions...will be appreciated.