Property eval help for first time flipper

[Account Closed]

I just had a house come across my plate and I'm a first time investor. It is on the market for 59,500 and needs some work. I haven't seen it yet in person, but the house next door was recently renovated and sold for 169,900. Same sq footage, same year, same bed and bath. When I run the numbers, that gives me a 40k rehab budget and still neting 41k in profit... I feel like I'm missing something... any suggestions?

[Brian Pulaski]

Wow, what you just described sounds like an easy $100k project for the main house, not even counting what the over the garage renovation would cost. A complete mechanical/electrical/plumbing redo, roof, windows, structural then all the nice looking stuff. If the comps are between 165 and 210, you would have to be buying the house for 1/3 of what they are asking... not to mention being a short sale may be a long waiting game.