Estimate on Repairs for a Newbie/Live In Flip? (Pics included)

[Greg P.]

Hi BP,

I am interested in a home that will list soon on the HUD. Since this is my first deal, I am thinking about living in the home as an owner occupant for a year while rehabbing the home. My goal is to finish the property and keep it as a buy and hold / rental.

My question is on estimating 'rough' rehab numbers on this property to see if this would even be worth doing. Similar homes in this area (after repairs) have sold in the past year for ~105k. That's where I'd estimate my ARV.

The tax appraisal for the property was 78k, and I'd plan to offer 65k, given that it is an older home (1963) and from the pictures would need almost everything inside redone. Rental comps have three bedroom homes in this area renting for 1,200, so the cash flow for the cost of the house is what gets me most excited (although feel like there is appreciation opportunities after fixing it up).

So, I'll just post the photo album here -

http://imgur.com/a/RMx8z

I'd love your thoughts as experts on if you feel like this would even be in the ballpark with the photos. To me the kitchen, floors, walls, outside paneling would all need to be redone. Coming up with a repair value is where I'm most concerned. Hoping I can do an actual walkthrough in a week. Look forward to hearing from you, thanks!