My partner and I are preparing to purchase our first investment deal, and after years of studying our local market and saving capital, we believe we’ve finally found the right opportunity.

The property was originally purchased by a flipper who began renovations but ultimately had the project red-tagged by the township. After running into permitting and construction issues, the seller decided to walk away and list the property instead.

Since then, the seller completed a portion of the heavy work, including:

• Installing a new HVAC system
• Rough-in plumbing (though most of it will need to be corrected)
• Rough-in electrical

The home is now down to the studs, which gives us a clean slate and, in our opinion, a solid foundation for our first BRRRR project.

We have a family member interested in financing both the purchase price and construction costs. Our plan is to complete the renovation, stabilize the property with a quality tenant, and refinance in approximately 18 months.

I work in the industry, have strong contractor and professional relationships, and plan to self-manage the property, which helps keep operating costs down.

That said, I’d love input from those who have been through similar projects.

Is there anything I may be overlooking or should be especially cautious about, given the property’s red-tag history and partial renovations?

Thanks in advance, BP — appreciate any insight.

- Joe

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