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Rehabbing & House Flipping

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Taylor Kamal
  • Real Estate Agent
  • Willowbrook, IL
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17
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Heavy Basement flooding & Mold. Should I run?

Taylor Kamal
  • Real Estate Agent
  • Willowbrook, IL
Posted Aug 23 2016, 17:47

So I walked through an AS-IS REO today. It's a 3 Bedroom 2 bath Brick Ranch with a basement. Upstairs needed a standard kitchen/bath update, new paint, etc. It seemed pretty standard to me.

... but then I walked into the basement. I think the attached pictures do a way better job describing it than I can in words. 

Just a quick run down, I'm looking to flip this. If I move foward I'd end up paying 55k (cash deal) & I'm confident in my ARV coming in between 130-140k. I'm an agent & I used to own a restaurant walking distance from this property, so I feel like I have the buy/sell figures down pat.

HOWever, the rehab costs are concerning me. Upstairs needs a kitchen/bath update, new paint, etc. That seems pretty standard to me. But, I've never seen this much flood damage to a property & I'm just being jittery.

Looking at the pics, can someone give me direction on what to expect when doing flood & mold repair/remediation? I have quite a bit of wiggle room between Purchase price & ARV. How much have you folks paid for repairs/remediations in the past? Are there Other hidden costs/issues (electrical?) I should be concerned about during the flip? Are buyers going to cause me headaches even after the property has been rehabbed?

Thanks you in advance for all your help!

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