We started in real estate as wholesalers. We haven’t really “closed” a deal and been paid our fee. We cancelled the first deal because the repairs on the house were going to be more than expected, and it wasn’t as good of a deal as we thought after speaking with other investors.

We found a property in a wonderful “we care” family neighborhood. The streets in the area are beautiful. The seller purchased the property at a tax lien sale. The owners moved out of state. The house needs updating and a lot of cosmetic work. The house is a traditional cape cod style home built in the 50’s with 3br/1ba and 1600 sq ft and a full basement underneath. The house is structurally sound with no electric or plumbing issues. We walked through the house with a contractor to get some estimates.

The lowest the seller is willing to go is 45k. The house comps for 100K+. If we do some updating the home by adding a master suite in the attic (contractor suggested it), we could add value to the home. It would still be 3BR because we need to take out a BR downstairs to make room for the stairs to upstairs and turning it into a parlor; then opening up a wall to LR to open the space up. So the numbers as we have them are

ARV- 100k+
Repairs- 30k
Profit $25k -holding costs/profit

We have never done a flip/rehab before, we need some guidance. We are reluctant to do it but we don’t know how to fund the project. HML? If so how do we go about it?

make sure there is plenty of A/C and ventilation if you decide to add that attic master. Those are ALWAYS stuffy and at least 15 degrees hotter than the rest of the house…I’m sure everyone here will say good place to start is your closest real estate investor club. Or if you know anyone with BIG pockets that trusts you enough, you could try to strike a deal with them. You won’t get all that profit you calculated, but it’ll be better than using your own money.