First deal on the rocks, would you back out?
So I have been working on my first deal which was going to be a fix and flip. The property is unique, it was an older couple who had a contractor building them a custom home. The owner was an architect and his wife worked at Lily. Sometime after framing and mechanicals there was a falling out and the owner continued the project as his own GC. The home was started in 2002. It is 7000 sqft and has amazing oak timber framing through out. It also has Geo thermal heating that supplies radiant heating to all the floors in the home. Yes, 7000 sqft of radiant heating floors.
The home is on an auction website, I plan was to get it for around 200k-225k then put 200k into it and resell it for around 625-650. After fees and expenses I was looking at pocketing around 90-100K.
The auction started yesterday and I put in my first offer for 198,000.
The house is at the end of a long road that only has a few houses on it. I went by to look at it this morning and saw a small satellite dish that said Hughes net. I know this is internet service for people that live in rural areas. This isn’t a rural area just like a very long driveway. I did some research today and found out that high speed internet isn’t offered to this home. The fastest landline internet speeds available are 5mbps dsl service through ATT. ( not fast enough to stream Netflix, YouTube or play video games.)
In my mind this is a deal breaker. I don’t know a family with kids these days that would buy a 650k home that essential doesn’t get internet service. My children might make it until 12 noon on the first day with out internet.
It’s kind of a bummer because I’ve got a private money investor in place for this property. I know they will be down for the next property as well but I was really looking for a decent payday on the first deal. It would have made for a better story when I’m on the bigger pockets pod cast in a couple of years :)
OH well on to the next one.
Let me know if you think I”m making the right choice backing out of this one.