Heavy Basement flooding & Mold. Should I run?

[Taylor Kamal]

So I walked through an AS-IS REO today. It's a 3 Bedroom 2 bath Brick Ranch with a basement. Upstairs needed a standard kitchen/bath update, new paint, etc. It seemed pretty standard to me.

... but then I walked into the basement. I think the attached pictures do a way better job describing it than I can in words. 

Just a quick run down, I'm looking to flip this. If I move foward I'd end up paying 55k (cash deal) & I'm confident in my ARV coming in between 130-140k. I'm an agent & I used to own a restaurant walking distance from this property, so I feel like I have the buy/sell figures down pat.

HOWever, the rehab costs are concerning me. Upstairs needs a kitchen/bath update, new paint, etc. That seems pretty standard to me. But, I've never seen this much flood damage to a property & I'm just being jittery.

Looking at the pics, can someone give me direction on what to expect when doing flood & mold repair/remediation? I have quite a bit of wiggle room between Purchase price & ARV. How much have you folks paid for repairs/remediations in the past? Are there Other hidden costs/issues (electrical?) I should be concerned about during the flip? Are buyers going to cause me headaches even after the property has been rehabbed?

Thanks you in advance for all your help!

[Patrick Liska]

That looks like it has been flooded, you will have to gut all those walls, drywall insulation and trim redone of course and foundation and framing treated for mold. upstairs will be about 20- 25,000 downstairs you are probably looking about the same, so you are probably looking at about $50,000.which will put you at 105,000 and probably about $10,000 closing costs when you sell and probably 2,500 when you buy it - you are now at 117, 500  plus holding costs. you can maybe make $10,000 on it.