Newbie....Fix and Flip...Big One

[Will Eagles]

Hi, thanks so much for letting me become part of this amazing group and I have loved reading and learning from everyone here as well as the podcasts. I am new to the game and have been doing a lot of learning and prepping for my first deal. I have been analyzing as many deals as I can and often times feel like things are a no brainer but do not have people around me familiar with the business. I have a deal that I have been watching and its been on my mind for a while. Its interesting. The property is Old, Big, and been listed for almost 3 years. It was a foreclosure and I believe is bank owner at this moment. The property is 1.57 acres, 7899 sqft (yes that is not a typo), 5b, 3full and 2 half bath, It was built in 1850 (Old I know but has had some work), Amazing property with comps on some newer properties in the high 600's up to 800k with far less sqft. It is listed currently for 475k but i feel that using the fix and flip calc in the forum i would not pay more the 400-440k. Obviously, the age is a concern. I would need to take a hard look at things like the fireplaces since there are 7 and I know in old properties sometimes they are not up to fire code. possible asbestos though the heat is radiant and it has central air, possible lead piping, and possible new electrical.(All assumptions without seeing the property yet) I feel as though the rehab budget would need to be in the 120k area. I would love to share my whole analysis with someone but from what I have here am I missing something. This is the first deal that excites me but the fact its been empty for 3 years concerns me as well. Why am I the only one seeing this?

[James Fisher]

@Will Eagles

Looks like one heck of a challenge!  What type of roofing material?  What condition on the fireplaces/chimneys?  

I have a 14,000 sqft place that used to have spanish clay tile.  Previous owner tore the tile off and put asphalt shingles on - which caused me to loose Historical designation.  A new tile roof was quoted between $120,000 and $275,000.  New asphalt shingles (50 square) was $50,000.  

At a different home I had multiple chimneys that needed re-pointed and sleeved...it was about $10,000 per chimney per floor (building is 3 stories).  

Those are just two (of dozens and dozens) of the common issues I've ran into in buildings that were built in the early 1900s.

Good luck - I am very interested in following you on this if you pull the trigger.