beginner luck? or Misunderstanding of the situation?

Question

HI, I'm a new wannabe investor from abroad, due to low budget I have started to look and analyze opportunities in Columbus, Ohio metro.
i find estate that does not publish on zillow (i call that "off market" ;) ) at a really low price, but the house condition is bad, and It should pass a deep rehab. this house in good suburb, and the meaning ARV of the house in this area is between 131-188K (it's depend on the analyze method), the house offered in the for 60K and i sure it's can be decrease - the problem is that i dont know and dont have the tools to estimate the rehab expenses. the rent estimate is 1500$.
what do you think? What is the next step? maybe that kind of beginning is to harsh from aboard, and maybe should i transfer this opportunity to a local investor will glad to

Matthew Irish-Jones · Answer

@Uri Katriel complex construction projects being managed from abroad are a great way to lose all of your money quickly.

You need to find a company that specializes in this.  There are some companies with agency, property management and construction built in so they will spend time on looking at junkers.  Most agents that just sell a lot of RE will not waste their time.   These are extremely high risk investments.

Ed W. · Answer

Your possibility of making a profit under these circumstances (distance, limited budget, lack of knowledge, lack of experience, reliance upon people you do not know and will not be able to trust) is no more than 5% at best, and likely closer to 1%.  Stated differently, your chance of losing money on this is 95% or higher because you are relying upon pure dumb luck to make your profit.

Conner Olsen · Answer

@Uri Katriel I have used the Estimating Rehab Costs book by J Scott. Material prices have gone up a ton since covid so maybe come up with your scope of work and send it to another investor in the market and see what needs to be tweaked.