Great Property but major inspection issues

[Max Rieves]

Hi All, I am currently located in the Atlanta area. I have been looking for my first deal for months and finally found one that seemed great. The house had been flipped, was on a quiet street, had a huge yard with a fence, and my mentor owns 8 houses in the area that are all rented between 1500-1650. The house was listed at $179,900 and I offered 165k and we settled at $167,500. The sellers agent shared the inspection report with me and we found that the house has active termites, foundation issues, needs a new roof, needs new AC, the appliances don’t work, etc. The inspection showed that what appeared to be a great home in good condition was clearly not true. I pulled my offer after reviewing the inspection and the sellers agent told my agent “make me another offer for what you think it’s worth”. They also shared with us that the house appraised at 190k!

The catch is that this is my first deal and I do not have a full team of contractors at my disposal. I do know people who flip houses but my investor that is backing me is worried that we will not have time to manage the work that needs to be done. This house seems to be a great candidate for the BRRRR strategy but I am worried that this will be too much work for my first deal. Any advice would be awesome, thanks.