So here is Chicago finest (well almost, it is in Bellwood, IL). That remarkable 3BR 2BA brick SFR (built in 1948) with half bath in the unfinished basement boasts over 1600sq of habitable space. 2 car garage, price at only 77K.
Based on the comps in the area I think I can sell it for around 135-140K when done.
I realize I do everything wrong here : the property does not pass 70 rule, I buy for too much, I buy from MLS as opposed to from home-owner or wholesaler..but it offers an excellent learning opportunity...at a moderate risk . there is potential to make rental out of it for 1500 a month if everything else fails. Not spectacular neighborhood but not a war zone either.
here is what I think of it.
I am not moving any walls. I wanted to open up kitchen
$6,306 profit seems rather small given the risk. That could easily be eating away if you discover an electrical problem, dry rot, infestation, severe mold issue, etc. Your contingency isn't even 10%.
If it were me I'd pass based on the numbers. For one, the time spent on this may barely be worth $6k depending on what you value your time at. When you think about how easy that 6k could disappear, just doesn't seem like a good move.
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