My goal for 2015 is to land my first deal. Not necessarily sure which way to go, but I think I had an idea that I'm seeking guidance on. We were visiting some friends over the weekend, and across the street sits an empty house that caught on fire about a year prior. I asked my friend what was going on with it, and he said it sat with very little work being done on it. My questions for BP are:
- Is a house that caught on fire, and very little work being done on it a good start?
- If so, how would I get started?
- Is this a good example of flipping?
Sorry for generic questions, I'm still new enough that I am not fully sure how to get my foot in the door. Thanks for any feedback!!!!
My first guess would be that if it's been sitting for a year, then either the owner wants too much for it or it is too severely damaged (which would again go back to the price).
If this was a small fire, it could be an easy flip. But do you know the extent of the damage? And now that it's been sitting for a year, there could be other damage.
Is the neighborhood mostly owner-occupied? If so, it could possibly be a good flip.
The first thing you need to do is find out more details on the house and the value of similar homes to it in the neighborhood. See if other homes are selling in the neighborhood....if it's a place people want to be.
I didn't like burnouts in general because there is just too much chance for the unexpected. I figured the owner got the insurance money and I made really low ball offers and if they took it fine. Finally I met two contractors, one like to buy burnouts and live-in sort of and rehab and sell after two years for the tax free exemption on the profit.
The other said if if looked like he could make 30% on the deal give him a call. Between the two of them I sold most of the burnouts I got.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.