Pre-foreclosure for live in flip or potential BRRRR

[Andrew R.]

Hello BP! Our first plunge into REI; I have looked into 100+ properties and this is the best I've found so far.

1. Our situation...Military family, 2 years left in the area, looking to flip or rent when we move, tired of renting, lease up in June.  We are looking to buy properties in each area we move to over the next 15 years of service (approximately 5 moves).  The long-term goal is to develop passive income to supplement my pension by either BRRRRing or flipping/pyramiding up to an apartment complex in the area we retire.

2.  The Deal....Preforeclosure 2/1.5, last unit in row of 6 townhouses (built early 1900), 100yds from highway offramp (bit of an eye sore but trees block noise well and can't beat the location (fenced back yard=no noise) in great area walking distance to 2 hospitals, 3 breweries, downtown area, college town but far from the school, big military town.

3. The problems...huge elm trees next to crawl space foundation (concrete foundation, brick structure). No cracking or issues observed, have not had professional inspection yet. Spoke with foundation repair company est. 15k without looking at it (for ballpark #, will have an onsight inspection once an offer is accepted). Tree removal est. 10k. Don't know if that needs to happen, but they are scary big and scary close! Window AC units + old home= expensive Central Air install 10k. (other AC options? I'm all ears). Add another 10k for other repairs/upgrades ( the place is in great shape on the interior). Total est. "Rehab" 45k. If the foundation is O.K.= 25k. Do not know HOA/Co-op fees yet.

4.  Looking at the property today but may have to move fast.  Is this too much to bite off for our first purchase?  Huge curb appeal, amazing rental location, flood zone (typical in this area), AC install, trees, oh my!

 -Listed for 188K

-ARV 250k (what other townhouses sold for)

-Taxes/mo=$180    Insurance/mo=$275    Est. Rent=$1400-1700

-Vacancy/Repairs/Prop Mgt a month= $450/mo.

-Rehab=$45k

-Right now my numbers put our target purchase price around 120k out the door if foundation needs repair and tree removal. I have VA loan or conventional ability and looking at better cash flow vs. no down payment? Any opinions on best financing option? Cash flow VA=$22/mo. Conventional 20%down=$136/mo.

I look forward to your input! Thank you!

Andy