Foundation Issues - FLIP or NO FLIP?
Hello BP! I'm new to this world AND that of flipping. I've been in the construction industry for over 6 years though (residential for 3 and now commercial 3+). I came across a great investment property in Orlando, FL ($200k LP with upside of about $100k), I have a family friend that is interested in funding the deal, but I just found out the property has foundation issues. Apparently they have had the property pinned and there was a failure, so they re-pinned and now house is not level. I'm thinking of walking away from this because re-sale wise I don't think it will move. Has anyone had a similar situation? Foundation issues scare a lot of people away, so although I'm not afraid of hiring a professional, I think on the back end it may hurt us. Thoughts?
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- Flipper/Rehabber
- Kansas City, MO
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Foundation issues don't usually scare me, but the fact that the property has already been pinned and re-pinned tells me there are some on-going issues there that may be hard to fix.
Seems like this could be a future headache so I would walk away from this one.
As far as your numbers...
$15 to 20K for repairs is not much, so hopefully the rest of the property is in decent shape?
Otherwise, the $15k in holding costs for 4 months seems way high...are you getting a HML?
- David Robertson
