Updated about 7 years ago on . Most recent reply
Taking on Large Rehab
I have recently come by an deal that from analysis so far looks really good. The "issue" is that the house is a total rehab, looks terrible. I know the saying goes that the worse it looks the more money it produces but I am wondering if there is a line that shouldn't be crossed. Just quickly, the numbers look like (Off Market Deal):
Asking: 80,000
Estimated Rehab: 150k
ARV: 325k
It is a multi family so I plan to BRRRR the property. It is in a nice area which dictates great rents as well.
This would be my second investment, the first being a multifamily that did not require a ton of rehab that I could not handle myself, which is probably why I am so hesitant. I suppose I am just wondering if the numbers make sense I should just get out of my own way or if there is a certain caution I should take that I am not seeing with a rehab like this. Any help or advise anyone could offer would be greatly appreciated. Thanks everyone.