First rehab, how much is too much?

[Jacob Chapman]

Hey BP! Just looking for some opinions and advice from those more experienced that I :) So I have been listening to to the podcasts for over a year now and am moving to an area where I want to start on my real estate dream. That said, I always heard in every podcast that EVERYONE would joke and say that for their first house they would pay too much, take on too much, estimate wrong, and any number of other mistakes that would happen. Obviously I want to not fall into the same trap! So, I am hoping to set myself some limits and get some advice on how much work is to much work for a rehab? For example, say there is a home that is listed at 40k, but I think I might be able to get it for 30-35k. Homes near by have an ARV of around 80k, and all the numbers work out as long as rehab costs are around the 20k range. THAT SAID, for a first rehab, how much work would be too much work? Say I go into it to check it out and all the walls and flooring are taken out to the studs - too much? Say walls are still up and flooring in but it needs to be gutted more? What if it needs a new roof but inside if mostly ok? What if it is all of the above? And on that note, for a small duplex that's about 1100 sq ft total, what is the HIGHEST rehab cost that you would assume worst case scenario? I will be honest, this is a hard question to ask since there are so many variables, but any advice would be great :)