Worth the risk? You buy a house for 109K estimates for the rehab are 20-40k should sell for 190k?

Question

It needs a full rehab - roof/carpet/kitchen/paint.

Nice area 1,500 square feet.

With those numbers should I take that risk? Would you? why or why not?

Answer 1

if the recent comparable are making the market then yes if it is just what you think then do more research

Answer 2

There a lot more numbers you need to look at.  What is the average house selling for in the same area?  What are the features of that house?  How good are the estimates, that is a pretty large range of estimate?  How much money do you have available if something goes wrong and the actual work needs more money?  How long can you afford to hold the house?  How long will it take to rehab the house?  How is the market in the area doing?  Is it dropping?  There are many more questions you would need to ask in figuring out if this is worth it or not.

Answer 3

Depends on the amount of time you have to fix and sell it.  Will you be living in it while doing repairs?

Looks like your profit estimate is 40k...remember even if the house looks good...location, location, location.