Major rehab needed. Is this worth it?

[Jeff Plotkin]

Just got an offer accepted on a house for $90k purchase price in cash. The comps support an ARV of $170k. I expect the rehab to cost between $40k-$50k and there will be some difficult repairs. Is a major project worth the headache at this cost?

[Michael Noto]

Three things I always make sure of when deciding whether to purchase a BRRRR

1. Double and triple check the ARV.

2. Make sure the budget is firmed up and leave a fudge factor of 10-15% to account for things you miss cause there is always something. 

3. Have a place to refi lined up if you don’t already. Cash out refinances are increasing more difficult in this lending environment.