$6k House?

Question

Let me begin with a bit of a disclaimer haha:  I am mostly interested in buy and hold, and know very very little about flipping.  Also, I know there is a negative connotation with super cheap properties.  Ok, disclaimer over.

I am currently closing on my first property, and I'm already trying to figure out how I can come up with the funds to purchase property #2.  Why not flip a house?  I know of a $6,000 house that needs a lot: complete heating system, all windows, not sure about the floors or plumbing, but for the sake of argument let's just say it needs a whole lot of stuff.  But even if I had to put $60k or $70k into it, then turn around and sell it for $125k...why wouldn't I want to do it?

So I suppose the question is, should I be afraid of a $6k house?  It is in an ok area, and I'm confident that I can get the work done.  Ignore the fact that I would be a first time flipper, I'm more focusing on the fact that the house is so inexpensive.  Too good to be true?

Brent Coombs · Answer

@Mark Smith, so if an identical home next door that didn't need any repairs were to come up for sale, it would easily sell for $125k? Also, what would a same sized vacant lot next door fetch?

Does it have any tax or other liens? Could you REALLY get it up to code for $70k?

And once finished, why couldn't THIS one be property #2? Lots to consider. All the best...

Mark Smith · Answer

Haha can't lose on a $1 house I suppose!  I may start getting more information on it, I would love to go for it.