REO and Foundation Issue Rehabs - Easy Selling?

[Manolo D.]

Hey BP, although I can basically generalize that I could flip any property within 2-4 weeks, I am crippled by the unknown of selling. I have no experience in selling estates and the selling part prevents me from pulling the long awaited trigger.

A good friend of mine has had some rentals in AZ, but he wants to partner up the cash part with fixed return assuming 6 month transaction and a monthly fee every month.

Being an all in-house contractor, I think I could bring value add and create sweat equity in a major rehab, at least 10% of the ARV, the uglier the property, the better I can create. The rehab is without fear because I will simply assume worst case scenarios, something that every average rehabber is scared of, "what is behind the walls" or "the unknown". I would like to do at least a gut out rehab, or something that will cost 100-150k in construction cost to create enough sweat equity and bring down ARV and bring up profit.

My question is, how easy can you sell a property when it came from REO or have foundation issues? Let us just assume that it looks good, not average, and the wow factor is the living room that has a tile/stone fireplace on it. Sells for say 700k max. Permits and guarantee certifications are present. I might have acquired it for 450k or even 500k. If I leave out some details, just make some assumptions and help me out ;)