Tahoe Flip Deal

[Zach Thomas]

Check out this bank owned foreclosure that came up yesterday. Considering it as a flip opportunity.

https://www.redfin.com/CA/South-Lake-Tahoe/1327-Wi...

The good:

The price, location, size. Listed at $156,000 the price is obviously discounted. Similar sized homes in the area sell for $400-600k. It is located half a mile from Heavenly Mountain Resort. The house is a little over 2,000 square feet.

The bad:

I drove by the property today and it's in terrible condition. It looks a Frankenstein house with holes through exterior walls, interior walls are gutted and bare to the studs. I spoke to the city building inspector about the property as they were posting a red tag notice. The previous owner made several significant modifications without pulling permits. The inspector walked the property this morning and noted several major issues. The electrical needs to be completely ripped out and redone, the HVAC ducts are completely missing, the foundation is compromised (a few of the footings crumbling), the plumbing needs to be redone and brought up to code, the lighting needs to be brought up to Title 24, the lot coverage appears to be above the 25% maximum for Tahoe Regional Planning Administration. The inspector guessed it would take $200k to get it up to code.

Conclusion: $175k down (bidding war is underway), $200k to bring it up to code, $75k for finishes. If it sells for $600k it would be a profit of $100k+.

Would love some input from investors in Tahoe area on this property on the viability of this property. I have heard that working with the city of South Lake Tahoe is very difficult to work with.