Syracuse two family good deal or bad deal?

[Derek Moore]

Let me start by saying I’m from the metro NYC area which is about 5 hours away from Syracuse. I have a probate deal in Syracuse, Ny currently under contract at a $25k purchase price, $10k for the owner and another $15k for back taxes and utility bills. The houses ARV is about $70k but it needs a complete gut renovation, new plumbing and electric but even with all of that there will still be equity in it. Not to mention it can be rented out at about $800-900 a month to tenants, it’s only 10 minutes from Syracuse university! I’ve spoken to a couple of investors in the area but the project has been too large for most. I’m open to financing it myself and doing the flip but it would be hard to manage the project from 5 hours away and I don’t know anyone in the area. Any suggestions, advice or options I may be over looking?

[John Leavelle]

Howdy @Derek Moore

If this is a Flip the numbers are not good.  Depending on the cost of Rehab it may even be a negative.

$70K x 70% = $49,000 - $25,000 Purchase price = $24,000 Remaining for Rehab, Holding and Closing (2 closings) Costs.  That gives you $21,000 profit if you can meet these numbers.  What is your estimate for the “gut job”?  The closing costs will probably be at least $6,000 for both (if you have to pay for both).  What is your estimated timeframe to complete the Rehab and sell the property?  That impacts the Holding costs.  How much (little) profit are you willing to take?  What is the selling market like in that area?