Mold property

[Brandon Purdeu]

I believe I found an amazing deal. There is a property in the neighboring county to where I invest that is a foreclosure with extensive damage that is foreclosed and asking $12,000. Over the last 12 months properties have sold for $125,000-$140,000 within a quarter mile all slightly smaller. The home has had parts of the roof open up causing significant mold damage to the property. The house is a gut job all around to include new roof. The home is a 1700 SQ Ft 3/2 brick SFH. I estimate repairs at $20/SQ FT totaling $34,000 plus $15,000 mold remediation, $7,000 for a new roof and a little buffer of $10,000 for overages and unknowns. This puts total rehab at $66,000. I'd be into the house for $78,000 with a potential to resale for $130,000-$145,000.

Can anyone provide some insight if I am crazy or not? I am closing on a deal next week and would have to use a private lender for this house as I've committed my free cash to pay for the rehab of the other property but I don't mind paying extra interest on a deal this sweet. 

[Billy Runyan]

Very nice work!