Hi, I have never flipped a property before, but I just got an option on a major rehab that is completely gutted and needs some tlc. What do I do next. The owner will hold all but 30k for one year giving someone time to fix it up and sell. Any advice?

You have an option, now put a “Handyman Special” ad in the newspaper, i.e.:

HANDYMAN SPECIAL: 3/2, Gutted & Ready for Rehab. Market Value $XXX,XXX When Finished - Asking only Half That!! Call XXX-XXX-XXXX.

BTW, what are the numbers on it?

Take care,

… Christopher

I got the property under contract for 175K. I believe it could sell for almost 225K (low end)or above for arv. It is completely gutted so all it needs is cosmetic work and a few ammenities like appliances, toliets, sinks, counter. It has a new electric service, new roof, all of the windows can be salvaged, it has a couple of new windows. The heating system needs repair but is minor, mostly radiator heat. We figured it to be about 15K in repairs. The owner wants 40K in 30 days and will seller finance balance until 1 year with interest only payments of about 950.00/mo. It is in a high appreciation area near Chicago. It is zoned also for multi family units, so it could make a wonderful rooming house for approximately 7 tenents. The neighborhood supports that type of housing. I would rather flip it because I cannot come up with the 40K right now. I have 3 other houses I am trying to liquidate so I can buy this one cash, but they are not moving as of yet and I don’t think they will sell by the end of this month. The house is a good rehab project and doesn’t have a lot of code issues that would cost a lot of money. It would be great for a rehabber that can put a house together in about 2 months time. I estimated 2 - 4 months rehab, depending on time commitment. Possible for a 35K or more profit.