How does this deal look?

[Diane Dib]

aka I've got cold feet.....

SFH in pre-forclosure, not bank-owned

Owner is asking 55K

Roof is newer, foundation and house are in good shape. Needs a huge cleanup - see my cat pee post - and everything needs to be painted. This is a historic house and personally, I like to keep them as true to form as possible so I have no intent of making it open concept, exposing beams and all the "fad" stuff I see nowadays. That said, it is not in a historic district so it will not be subject to their regulations if I need to deviate somewhere. But it will be solid and clean.

Kitchen and bath need work. It will need all new appliances. Heating system works great but is old and I'd want to replace it. We don't need central air in this area so I don't think I'd go through that expense. Plumbing probably needs to be looked at and I'd probably re-do the kitchen layout anyway. Kitchen floor is linoleum and that and the plywood will need to be removed to make sure there isn't any cat pee on the original floor underneath. Yard is tidy, no trees need to come down.

I somehow blew away the spreadsheet I made last night based on a blog I read here but here's what I remember:

Appraisal from last year states a MV of $120K, which is supported by sales in the area in the past year. There are some slightly bigger houses on the street that have gone for over 200K. Good area, close to highway and shops, but a quiet street.

Monthly expenses:

Taxes $285

Insurance $125 (wild guess for non-owner occupied in CT, my own house is $75/mo)

MAY need flood insurance, it is on the edge of the zone and I haven't called to check on pricing. I had it on my own house for $400 but that was in 2011. River, not ocean.

Water $50

If this is a rental, I can probably get $1200 without a problem (have talked to landlords in the area). Tenants pay utilities except for water.

If I flip, I should be able to get 120K at a minimum.

To cover utilities while working or vacant, I'd estimate electric $40, gas heat/hw $75/mo winter, $35/mo summer.

I have 20K in a LOC

I have a CC with 35K and another with 25K but cash advance fees are crazy if I were to use part for purchase. 

I can do cleanup and paint myself but may need to sub out plumbing and electrical. I have run plenty of network wiring in my old life though, so maybe I can run it if I have an electrician finish it off at the panel? Oh and the heating, I'd definitely need someone to hook that up as I'd like to switch it to gas.

So, am I crazy? It's ok, I've been called that before! I don't know what's scaring me more, the money, cat pee or electrical and plumbing! Thanks!

<edit> I wonder if I can also use Historic Tax Credits. I know that program was restructured last year and will need to contact my state office for info.