Live in a Flip: questions and advice please

2 Replies

Hello BP fellows!

I cant wait any more to start investing! I feel stuck with information and willing to do it so I just want to jump to the action. Here is the situation:

My husband is already pre-approved for a conventional loan.

We will do a 5% down payment because we don´t have a bunch of savings (thank God neither debt).

We are looking to do all the cosmetic work ourselves while living in the house. The money for materials will come from a passive income that we have, its going to be slow but I can live with that.

My question is: should I look for a house just by the numbers or should I consider other stuff like school district. I mention the school district because of my 3 children (11, 9 and 4 years old). 

I appreciate any advice. I know a lot of you have already done this and may have very good points to look for.

Thank you all!! 

 

I think for me living in the Albuqueruqe area, I feel as though if you are going to do a flip people are looking for areas that are rapidly growing, I like the Westside area of Albuquerque, Taylor Ranch, and some of the SW Unser area for houses as I feel as though they would be some level of ease when selling and the home values seem to appreciate a little faster due to surrounding development. I think schools are important but most of the schools depending on where you live in Albuquerque have somewhat poor ratings, in areas in which you would be able to buy and force appreciate a SFR enough for it to be profitable. I hope this helps.

@Laura Casillas I think you can approach it either way. What I have found is there is a buyer for every home, but things like school district may affect how fast the house sells, with houses in the most desirable districts potentially selling faster. Depending on your holding costs, this could make a significant difference in your final profit (although it sounds like you’re doing a live-in flip, so holding costs are less of a factor).

If the concern about school district is based on where you want to send your own kids to school while you’re renovating this property, then, yes, school district should be considered. If the property is in a district you don’t want your kids to attend, then you have to weigh that, and possibly try to mitigate it (applying for a transfer into a school you like, sending them to a charter or private school, etc.)

Good luck!