First Flip in Rural Nebraska, All Cash?
Hi all! I am presently under contract for a 2/1 with unfinished basement property located in Morrill, NE. I want to flip the home. It was FSBO for 38k, and I negotiated price to 22k inclusive of past due real estate taxes at about $1.5k, so the seller would receive the net difference. There was a tax certificate sale for TY2019 that I will be clearing up/having released in a day or so, already checked with County. Seller's grandfather left her the home via QCD and she is selling it because she cannot keep up with this home and her own, plus has unforeseen medical expenses. No title issues.
Other details about the flip property:
Tax appraisal is $40k, Propstream values it at $65k, and comps for other 2/1's are about $92k. The town itself is very rural, about 1k residents, which scares me a bit, but other close-by towns hold more residents. I am originally from NYC and now live in Long Island, NY and I worry about the micro population factor.
I ordered a home inspection, and also had property walked by a local contractor. Inspection revealed the home has a chimney vent issue and some exposed nails on the roof which was fully replaced 1.5 years ago, all fixable. The rest is mostly cosmetic. Rehab budget is $35k and will allow me to stick a 3rd bedroom in basement area for a better ARV of $100k (this is a conservative figure).
I am losing sleep on this house since it's my first deal and I need to make sure I am not overlooking anything. I have $100k in savings but horrible credit so I plan on doing this all in cash. I checked with a few HMLs and the loan amount is either too low and frowned upon, or otherwise possible but expensive as the HML will take a huge chunk out of my potential profit. Someone please tell me if this remote flip sounds like a stupid idea, because I keep analyzing it as a slam dunk. Help, please. And thanks for reading this far!