Rehab acceptable tolerances
I wasn't exactly sure how to title this post. I looked at a house to rehab and I had a little trouble determining what would be an acceptable tolerance for resale. When I talk about tolerance, what I mean is the level of perfection of the finished project. I understand that the expected finishes will vary from market to market.
My partner and I are new and looking to do a few flips. We found a property that has an ARV of $110k and the asking price is $54k there is a new furnace and updated electrical. The house is in a blue collar neighborhood and was built in 1925. The house was bought by another rehabber and appears they tried to do a lot of the work themselves. The work was extremely poor. They butchered almost everything that they touched. The floors are substantially out of level (approximately 6"). One of the exterior walls has about a 6" inward bow. The owner cut several of the beam supports and added random 2x6s as floor joists. I am in the trades myself, and would never consider buying a personal residence that has dramatically out of level floors and significantly out of plumb walls. Being new to flipping, I am having a little bit of a hard time determining what level of repair needs to be done. I feel that floors would need to be leveled, but that will affect the roof once jacked up. I feel that the house should be in the condition that I wouldn't mind living in, but I'm not sure if that is the right mindset or not. I spoke with a framer I know and he said that it sounded like if could be a tear down. Im sure this is probably too involved to be our first flip, but I would like to hear everyone's thoughts so we can hopefully learn from this.