$125k ARV under contract for $15k

[Nick Saucier]

Well, this is my 2nd home I've put under contract in my wholesaling career so far. I think it's a very hot deal and I'm excited as can be because this time I'm dealing with an elderly couple who've owned the home for 40 years and own it free and clear. I posted a few weeks ago about my first home under contract but it turned out to be a property that hadn't been through probate yet. I directed that owner to a good probate attorney in my area and that will take several months most likely, but such is life, on to the next.

This one I got from a call on my car magnet yet again, this time NO PROBATE(thank god). It was a home that was flooded during Hurricane Isaac and has extensive damage and mold throughout the home. House has to pretty much be gutted down to the studs and rebuilt.

Numbers:
1815 sqr. ft. on 2 acre lot 4 bedroom, 1 VERY large bath which I believe was converted from 2 bathrooms by the owners some time ago.
ARV: $125k
Estimated repairs: 55k
Contract price: 15k
Estimated rent p/month: $980
I'm going to market it at $30k and will wiggle down to $20k-$25k.

Thoughts on this deal?