Gut(?) Rehab Estimates on Foreclosure

[Lance Middleton]

Good Morning BP Community,

I'm looking at a owner-occupant(it probably would be sold by now otherwise) foreclosed property in Huntsville, AL and wanted peoples quick opinion on if this is even worth pursuing. Would be a buy-and-hold/BRRR.

Zillow Link: https://www.zillow.com/homes/for_sale/Huntsville-AL/92140807_zpid/12014_rid/2-_beds/0-100000_price/0-379_mp/globalrelevanceex_sort/34.704691,-86.610042,34.694723,-86.623989_rect/15_zm/?

Walk-through Video: https://www.youtube.com/watch?v=QeiuirTqxcg&feature=youtu.be

Here are the details:

- List Price: $13,900 

- 1600 sq. ft. 4 bed/2 bath

- (C-) area, but gentrifying

- Comps with med. builder grade finishes ~ $70K-$100K

- Rent Comps ~ $900/mo

- The house has multiple code violations (see picture below):

- At the very least needs(new): roof, electrical box, water heater, a/c unit, flooring, windows, doors, kitchen gut, bathroom gut, couple walls removed.

- As far as I can tell the structure itself is o.k.

So...

This would almost be a gut rehab in my eyes. The bedroom/bathroom walls all seem fine, but the "living area" is separated by an awkward couple walls(see video) that I would want to remove and if it make sense add a support beam and open up the kitchen and living area completely. I know it's hard to estimate gut jobs like this but I was hoping some professionals might give me a ballpark idea. Currently I am estimating $40/sq.ft, so all in at ~$78k which means I'd almost be breaking even.  

Huntsville, AL is a hot market. Another option would be to buy the property, demolish the house and hold the land until a new build makes sense. 

Everyone's input is greatly appreciated! Thanks so much!