Labor of Love Flip? Closing in 5 days

[Kim Heretick]

I close in 5 days on a 1927 beauty in Toledo, Ohio. REO will cost me $99k and ARV is $195k. 2300 SF, 3/2.5, 2 car attached garage.

Previous owner installed PEX plumbing but didn't pull any permits. I'm nervous about this and what the building inspectors will do because I think they'll be in this house. It needs some big work done.

To get the clay tile roof fixed $15k. I have to wait until spring and the roof is leaking.  It's partially covered by a tarp.  Roofer told me to setup bins and buckets in attic to get through winter in Ohio.  That freaks me out.

Has 3 YO boiler but has never had AC and will need it.  All of the steel windows need scraping and painting.  Aside from that, I could have whole house electrical replaced (new service was already run) and will at least need to run new electric to the kitchen.  Needs some plaster work from the roof leaks & plumbing cutouts, 2 full baths are pretty much a gut, new lighting, and my team will refinish the floors, replace kitchen & back hall floors, paint, and clean.  Also, needs some landscaping, new storm doors, and a little exterior stucco work.  I will probably have some of the kitchen enlarged because an old "phone room" butts into it.  This will require some new cabinetry (keeping the gorgeous originals it already has.

This will be a restoration more than a renovation.  I'm trying to bring it back to it's original glory with some modern conveniences, not gut it.

I'm very excited about doing this one.  I find old ones like this to be more gratifying.  However, I'm wondering if there's really going to be any profit left.  Most scared of the non-permitted plumbing cost because I didn't factor it in.

[Daniel Kramer]

@Kim Heretick Yes, that's the one. I did some digging and the bank is going through bankruptcy so my hope was they would let it go for less, and they did. The mortgage was around 226k and they let it go at 133k. One individual went back and forth with the bank up to 133. I went back and forth with that guy 133 to 153. He quit, I thought I had it after "going once, twice..." Then a 3rd person started bidding and I stopped at my max of 156 😖 It was a cool house, I still have some remorse about not going a little further but I'm also glad I made a game plan and stuck to it.