Go/No-Go?

[Nate Miersma]

Property: 5br/3ba, 1 acre lot w/ 30x40 Pole Barn

ARV: $215,000 - $220,000

Purchase Price: $70,000

Renovation Required: Estimated $80,000-$100,000... 100% complete renovation required - home in disrepair, utilities shut off (but operational per seller), owner living there with kerosene heater and gas generator currently; drywall repair/replacement throughout; new flooring; some new windows; complete kitchen demo/renovation, everything else you'd expect in a flip.

Potential issues: Home exterior is 100% brick; my partner thought he saw some issues (bricks cracked/missing) in a couple spots on his way in; house smells (like money to me - like a combination of dog urine and marijuana to most others!); INSIDE walls have either real or faux-stone on the walls - if it's real it may be labor-intensive to remove; it's winter in Michigan so exterior work has to be done around the weather

Question: We typically don't sink this much into renovations in Midwest properties, but the ROI still looks good. And I'm working with a new partner/general contractor who is VERY talented, but who hasn't done a ton of flips, so the scope of work is a bit overwhelming to him as he looks at the house in its current state of disrepair. Is it worth investing this much in a renovation with these numbers, or would you pass this one by and go after two more cosmetic flips instead?