Have first great opportunity- flip or wholesale?
I am in contact with a lawyer of an estate that has clients desperate to get rid of a property. I was the buyer agent of a deal that fell through on the property, so I have a very good idea of what's needed and what the ARV is. I haven't taken part in any actual flip or wholesale deals yet, but have been doing extensive research. My partner and I recently completed J Scott rehab books and have been ready to dive into our first flip.
A little about the deal. Large house in very nice neighborhood surrounded by $400,000 houses. The house was split up to have an in law quarters. It is very dated and needs new kitchen. I estimate the repairs to be around $50,000. It's not so much that it needs many repairs, but more of a reconfiguring. I feel I could purchase the property for $120,000. $120,000 purchase, plus $50,000 rehab with an ARV of $285,000.
I know that this deal could be very appealing if I wholesale it, but should I just jump in and get involved with this much of a rehab? We have a list of contractors, but haven't actually approached any of them to this point. Does this seem like a deal that I should just take the possible $20,000 in wholesale to get my feet wet?
Thanks for any input any of you seasoned investors could provide.