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Rehabbing & House Flipping

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Jobee Vincent Buenaventura
  • NJ (new jersey)
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finding deals is hard in nj. full gut rehab for a newbie?

Jobee Vincent Buenaventura
  • NJ (new jersey)
Posted Nov 12 2019, 15:17

hello everyone,

i'm just looking for advice on whether i should do a full gut rehab on a house flip as my first deal. the competition in my area is very hot as i'm usually beat out by all cash offers over the past few months so i feel like i have to look at properties that most investors would ignore. properties that may have higher risk...


the ARV of the property in question is about $370,000. rehab will cost me $110,000. land value is $156,600. it's actually already been fully gutted so i can literally see the skeleton of the house. there's not even anything to walk on at the second floor! Just beams of wood. I will be planning to use hard money 20% down at 11% interest rate. property is not livable so i believe a mortgage or FHA is not possible. so putting in the numbers on a random hard money deal calculator online, the return is about 12.5% or ~$40,000 which doesn't sound bad at all if the comps are right.

my real question is if it's worth the potential headache of doing a full gut rehab for an inexperienced flipper, as well as counting on the contractor to be doing work in the dead of winter in northern NJ. what are your experiences? what other risks should i watch out for?

Thanks for reading!

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