potential deal

[Adam Stanton]

I have a FSBO near me that I'm toiling over. Owner wants 80k but it needs a lot of work including new roof, all new electrical, some structural repairs and an update to kitchen and two baths. That doesn't include finish work. The best I'm willing to offer them is 40k. I'm guessing repairs at 60k but I need to do a thorough work order (thanks J Scott for the Book on Estimating Rehab Costs). ARV is about 135k however there is one outlier at 180k. Average DoM is about 70 but that's after a hell of a winter.

I think the property is better as a rental than a flip, which will lower my repair cost.  Renters don't need granite.  

I have the funds for the purchase but would need crowdfunding or HML for repairs.

That means I would also have to refi after repairs to pay everyone back and hopefully put some cash in my pocket then rent the place out. From everything I've read, refi's are difficult for SFH before the one year mark.

Appreciate thoughts and opinions.

Adam