Good Flip on rehab in Tucson, AZ?
I have found a property in my searches and could use some advice...
The 4 br, 2 bath, 1900 sqf home is in a very ugly state right now. It has been gutted in the beginning stages of rehab. Flooring , tubs, toilets, cabinets removed, roof needs powerwash and recoat, some drywall work is needed. The good thing is that it is located on a cul de sac right between two beautiful houses in a nice area of town.
According to the real estate agent, he is representing an investor who started the project but has several other projects in work at this time and is willing to sell for around $145K. He also said the comps come in between 170K and 180K and he estimates repairs between $12K and $15 K.
My research shows the comps around $170K and that the owner purchased about couple months ago for around $120K.
Does this sound like a property that would be a good flip? What would be the best way to approach? If the current owner is an investor, why would he not try to flip it himself? Any help would be appreciated.
Thanks,
Vince B in AZ
Firstly, I suggest estimating the repairs yourself. I ran into something like this where the investor said he needed money to cash out. Which was true but he also neglected to tell me that the repairs he quoted me were based on him doing the work himself, not hiring contractors, and not up to code. Which is the next step make sure he doesnt have any red tags with the code department. I would ask for a definite reason why he needs to pass on this. Make sure you can accomplish what he could not.
Thanks Kyle,
Very good points. I decided to Bird dog this to a more experienced investor who is currently checking it out.
How do you go about finding out if there are any red flags against a property?
Thanks Again,
Vince