Flips that need major foundation and structural repairs. Cons?

[Paul B.]

So far, the few flips that I've done have been what I'd call sugarcoat: paint, carpet, minor updates/upgrades, appliances.

I'm looking at a house now, however, that will need some serious work done to the foundation. Probably half of my $80,000 renovation budget will be allocated to these structural repairs.

Naturally, this will all have to be disclosed to any potential retail buyer.

Assume that, when finished, the house is perfectly renovated by any standard. Will the fact that it needed all of these structural repairs (which would be fully warranted to the new owner by the contractor) be a problem for potential buyers?

I would price the house very aggressively to sell it quickly. It would be a steal for the buyer.

What say you, BP Nation?