First REI deal looked promising but rehab costs keep growing
Calling out to all investors...How many of you thought you had at least a base hit on your first property and then, in the end it turned out to bite you (financially speaking). I am in the process of buying a foreclosed duplex in a good location where the market is very robust. I thought that would justify paying a little more for it (122k). I ran all the number six ways to sunday and thought I would do ok...because I thought rehab costs would be less than 100k. Now they keep ballooning, past 100k, past 150k. I have not closed yet and I’m starting to think I should bail some how...I only have a 3.5% down payment but it’s hard to figure out how this is going to cash flow when the complete rehab is done. Any advice??? I don’t want my first deal to kill my momentum.