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Gus Muller
  • Minneapolis, MN
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Deal closing March 15th. Fix and Flip? Wholesale? Rental?

Gus Muller
  • Minneapolis, MN
Posted Feb 15 2019, 07:05

Greetings community! I am a real estate broker, licensed building contractor, and I have done 10 fix and flips, with #11 set to close March 15th!

I am paying 190K (my own cash). 3 bedroom, 1 bathroom, 1 car garage rambler in hot area of Minneapolis. I've run the comps and ARV is $310K+ if I choose to fix and flip. Should run under $50K to renovate. Original owner, good bones, finished basement.

I know the fix and flip will most likely net me much more in the long run, however I am also pretty confident I could clean it up and wholesale or toss it directly on the MLS for $215K-$220K and could pocket $25K-$30K quickly with little to no effort.

I don't think the rental numbers make much sense on this one, and I don't have any rentals. I think I'd need to pay less in the future to make the cash flow possible.

So, do I take the fast money and pump that into finding more leads? Or, do I tie my cash (AND TIME RUNNING THE SHOW) up and flip this one for the larger profit (in about 3-4 months). I know that with the house free and clear after I close that I can borrow against it cheaply, but having $190K cash out there will inhibit my ability to close on other properties.

  • Broker Minnesota (#40632642) and Minnesota (#BC756273)

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