I have looked at two properties so far. First one was in a somewhat up and coming urban neighborhood in Fort Worth and the second was in an established neighborhood near where I live. They both got taken and I'm not so bummed about the first since the location was sketchy despite the neighborhood being or soon-to-be trendy. The second one was not bad but not as much of profit margin as the first. But this evening I will be viewing my third property located in what we call the mid-cities area here in the Dallas/FW area. Similar to the second property and by the looks of things someone has already started some demo work (flooring in kitchen, den and dining have been removed).
My question is do I take the virgin property plunge or hesitate and lose out again? A part of my brain tells me I should take the leap and if the numbers work -fabulous. If not, well fabulous learning experience. The profit margin is small but I feel I need to take the plunge.
What is a small profit margin? If the numbers do not work or the project has to many repairs or hidden problems come to be you can very easily loose a lot of money Do you have a back up plan? What are the rentals in the area/ Please be very careful with your capital and do not try to force a deal
The profit margin on this is just under 5k. The rentals in the area range from 1200 to 1400. I agree, don't want to take something just to take it. Thanks Steven!
Are your looking to buy/hold or flip? 5K would definitely not be enough profit to risk for a flip. Either way, I agree with Steven and would highly encourage you to wait for the best possible deal. Are these MLS Listings you are viewing?
Tyler H., Real Estate Agent in TX (#0635143)
I was planning to flip. But yes, I agree profit margin a bit too slim. No not MLS listing from a wholesaler.
This is for either Steven or Tyler...ways to find discounted properties without going through wholesale companies?! I do have a full-time job and using those companies do save me time but would like other options.
Which company are you using?
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