Would you flip a property with SEVERE foundation problems?
Let me descibe the situation...
Property conditions:
The house was built on a steep incline and appears to be falling down the fill. So much so that cracks are all throughout the house, it feels slanted when you walk through it, and the roof has come detached in one area that is allowing water to leak in. It has some serious foundation problems. As far as cosmetics go, it would need some drywall repair, roof repair, stucco repair, paint, carpet, closing off a loft to turn into a bedroom. For the most part it actually looks quite nice had it not been for the foundation falling down the hill.
The numbers:
It's definitely the nicest house on the block so determining a good ARV is really tough as nothing compares to it. Just from its unique location it feels like a cabin the woods where as the rest of the properties are standard typical neighborhood. It's listed as a raised ranch but is more of a 4 level with the garage as the lowest level and more sq ft than most surrounding properties. Selling through HUD. It was last sold in 2009 for $280,000 and it is currently listed at $158,000.
What are your thoughts and would you do it?
