Pittsburgh PA first flip- good deal or no?

[Pam J.]

hello, new here and getting into investing.

We currently own a rental in the south hills part of the city and looking for our first flip.

Would you do this deal? It is a foreclosure in pittsburgh (where we live). This will be a big sweat equity deal, as my husband and brother are skilled in cosmetic fixes and looking to get their hands dirty. We will have to outsource hvac, windows and electrical work.

The ARV is from our trusted real estate agent.

Asking: $65k

Target price :$55k cash

ARV: $120k

Rehab: goal $29k based on not having more than 70% into the deal. It’s a tight squeeze. The house needs:

Hvac

Siding

New hot water tank

New roof on small detached garage and possibly house (it was snowing on show day)

New bathroom and kitchen

Add a half bath 

Floors, paint, fixtures

Porch rehab 

All new windows

It’s a 3/1/1 approx 1500sq ft

This would be fully funded from a family member using a intrafamily loan and they would receive 4% of the sale price at closing along with a low interest rate before then. 

Do the numbers work? What am I missing? Give it to me straight. I’ve been creeping in all the forums here and appreciate the feedback.

Any tips on pittsburgh locations for flips are welcome. Where we live in the south hills is too expensive for our budget so we’re looking at different city areas.

Thanks!

Pam

[Brian Pulaski]

@Pam J. the scope of workyour described is more like $50-60k minimum where I used to flip and that would be with doing a lot of the work. I added a bath, it was $10k. HVAC (boiler, furnace?) is probably $6-8000 minimum. Kitchen $7-8000 if you do the install. Bathroom remodel is a couple grand. Windows will be $4-6000, roof will probably be $5-7000, siding will be $10k I find your paying for it to be done. Flooring, paint, etc, your another $5-10k for the "other" work. What does your $29k budget look like?