Partner and I found a very promising flip thay we'd want to make an offer on. House is listed for $99K, contractors are ballparking $75-100K in repairs, ARV is in the $300K range. This would be our first flip, we would have a contractor who works with investors and flippers handle all the work, but this seems like it may be out of our league. It's a 1400 SF 2br/1ba home in a B class neighborhood.
New Siding (entire house)
Large drywall patching
New bedroom from existing space
All new paint interior/exterior
No termites or foundation issues, luckily.
In terms of general condition, the dining room (which will be turned into a bedroom) and living room just need some touching up, bedrooms bathrooms and kitchen need moderate work, and the entryway, hallways, and exterior all look to be out of the 7th circle of hell.
This seems to be a massive job, but in this age/location it’s hard to find good deals (as everyone is aware). Because of it’s condition, it would be a lot easier to get this house for a price that makes sense.
Does this seem like too much for two newbies who use an experienced contractor?
How long has the property been listed? If the house has been listed for a while and has had no action, that may tell you something. Run the numbers for every possible scenario, then add another 20% for overages/surprises for what you've been quoted. If there's still meat on the bone, you may have yourself a decent deal.