Assistance with Analysis of Property in Bronzeville, IL

[Sidney S.]

Hi all!

I am new to BP and have a pressing situation.

My husband and I are interested in a property in the Bronzeville Chicago neighborhood and are teaming up with someone local to the area for this potential deal.  This property would be a flip with the possibility of using it as a rental up until we sell in Spring 2016.

The Property

- 4 Floors

- Basement: gutted and needs full reno (can put 2 rooms down there). This could be a separate unit by itself but we're told it makes more sense to combine w/ 1st floor unit and create a duplex

- Don't know complete layout of property but have been told that 2nd and 3rd are already a unit (a large one).  Basement will be combined with 1st floor to create a larger second unit.

-Bedroom/Baths unknown. Both of the units that are already completed have at least 2 bd/2 ba

Numbers (approx.)

Purchase Price: 60K

Rehab: 100 - 125K

Holding Costs for 6 months(includes utilities, HOA: 6K

Closing Costs + Insurance: 3600

Marketing: 3K

ARV: 325K (We have been told that the entire property has the potential to sell for around 400K)

Total Expenses: 211K (for all of holding, purchase, marketing)

Total Gross Profit: 107K

Problem

We're having issues gathering all the specs on the deal given that the property has not been listed w/ square footage noted and agent representing the property will not provide further information. The agent hasn't even provided a ballpark figure. 

Our partner has viewed the property and is a contractor as well. He believes this property has an overall square footage of around 6,000. As my husband and I are out of state we have not been able to view the layout of the property, but we've been told how it flows and seen some pictures. 

We're integral in the analysis of this property but can only go off of what other people have told us.  Potential exit strategies (based off of what others have told us) would be to turn this property into a larger duplex and sell off each unit OR do a buy and hold. 

This feels like we're almost purchasing at auction but the numbers make us want to move forward. 

This would be our first flip or second buy/hold. Is this a crazy deal to run into or what other safeguards can we arm ourselves with?