Details from my first off market purchase

[Kurt Kwart]

Hello BP!

I'm going to use this thread to detail a project house that I just purchased.  I have learned so much from the community here hopefully sharing this might help someone else.

We closed around three weeks ago and I will update the thread accordingly.

History: I got a call from a 'tired landlord' who sold me some houses last year with an agent.  They had a fire in a rental.  I inspected the house. It had  minimal structural damage and the rest of the bones looked good.

We went under contract that day and closed a week later.  I am not sure if I will flip it or rent it.  My thoughts are to rehab with the idea of selling in 10 years.

Purchase 12,000

Rehab/Holding Estimate 35,000. ARV 85,000 Rent 1200 (keep in mind taxes are over $300/month)

I estimate it will be rented in February.

The house is very chopped up with 4 small bedrooms and a bunch of illegal rooms/bath down in the basement.  It's around 1000 sq ft downstairs plus the 2 upstairs dormer bedrooms.  I need to check with the city to see what is legal.