Great Neighborhood, Terrible Property, Good Price

[Luke Mitchell]

Hey guys! Me and the wife found what we think is pretty good deal in a great neighborhood. The comps in the hood are in the low 200s and the owner wants 20k for the property. It has significant roof damage and fire damage and the back yard is a mess with a pool in need of major repairs. I am wondering if its worth getting a general contractor over there for an estimate or if we should chance it, and make it a wholesale opportunity since we haven't really flipped on this level before. Another issue, if we did hire a GC, would be if the house has so much damage that it needs to be torn down, is should we rebuild it the way it was a 1970s) design or open it all up in modern fashion. Our hearts tell us to flip it no matter the cost  but our minds are saying find an investor who is willing to flip it and we just wholesale it. I also think we might be able to get it closer to 15k given the time frame and damage. Thanks!

[Shawn Ward]

@Luke Mitchell we just bought a house with this exact profile. We knew how much we'd have to spend to get it up to the comps in the neighborhood, and the deal made sense. Here is the link to the blog I am writing on this deal:

https://www.biggerpockets.com/forums/67/topics/498...

I say yes, get AT LEAST one GC to take a look and give you an estimate. After running numbers, if it looks good, it could be a great deal. If the numbers don't add up, pass. 

All the best!

sjw