First Flip or BRRRR Opportunity

[Zac Henderson]

Hello all,

I am looking to get into real estate. I am a new investor in real estate and actively searching for properties in northern Alabama.

A wholesaler reached out to me about a deal he has under contract.

Without getting into the specific numbers just yet, it seems like a pretty good deal, $15k purchase price when comps are 60k-70k, with one hiccup. There is a crack In the foundation.

A wholesaler spoke with a contractor to get a quote and the estimate for Helical piers and replacing the concrete is $24k with the caveat that complications may occur with other portions of the house when something like this is done and that they are not liable for if any of those issues arise.

The wholesaler estimated the total repair costs to be $33,000 including foundation repair, paint, etc. I will do my own due diligence to confirm that.

My question is as a first time home buyer and new investor for a flip or potential brrrr strategy, from a high level perspective, is this too much of a project to take on as a first investment? Are there other factors or considerations that I need to take into account?

Any advice or guidance is appreciated!

Thanks



[Zac Henderson]

@Jaron Walling

I appreciate the insight. And I totally agree. It seems like somethings not right and that it may be better to find a project that’s more cosmetic or opening up walls, etc. as a first deal.

With that being said this is actually one of the first properties that I’ve been able to somewhat analyze and get opinions on. So, for practice, if this would’ve been something I wanted to pursue further, what would be the next steps? Call the contractor or other contractors for more quotes? Find an agent to pull more comps? Perform an inspection?

I just want to get better at analyzing deals so that when that one comes along, then I can capitalize on it quickly.