High End Flips—Rhode Island

[Nelson Taylor]

I am an investor and real estate broker in Providence. I have a high-end listing that has been on the market for over a year. Granted, the owner started way too high at $1,850,000. Now it’s at $1,350,000. The owners are 92 and motivated to sell the property. It’s an 1849 home on Prospect Street—5000 sqft, 6 beds and 4.5 baths. I think the safe ceiling is like $1.8m. Certainly more if very special. The house is in great shape, just tired. Needs a kitchen, 3 of the 4.5 baths, new central heat/air and removal of wallpaper and lots of painting. Windows are old too. The property could probably be secured for $1m, and by my estimates this is about a $500k reno. Big cash outlay, but a big return, no? I don’t have any experience with high end flips, but am surprised I haven’t had any contractors look at the property. Is that just too much risk, to put that much $ into play for that kind of return? I feel like if I had the means, I’d do it. Any insight from flippers with this level of experience?