30k plus profit in D area flip? Possible?
Well, here we go folks, I’m ready to lay this to bed once and for all. For years I’ve read from B and A class investors, others trying to scare me off of buying and renovating D class properties. They’d write, “It will never appreciate.” And... “It is worth 20 grand today and it will always be worth 20 grand.” Yada Yada. Today we put this all to the test...
My year long section 8 tenant is moving out this weekend, her lease is up at the end of the month. I called my realtor and said I would list the house with him while we look for another section 8 tenant paying $795 a month if he could get me a crazy number like 50k. I bought the house roughly two years ago for 19k and did a 10k renovation. It is near a major University on the edge of a rough area. After looking at comps, understanding our renovation, my realtor said he is comfortable at 66k, but can push it to 69k.
It feels great to hear those numbers, I’ll report back if I am in fact the genius I always hoped I was. To my never buy in rough area naysayers, I have nothing to report yet, but I’m putting you on notice that pigs are going to fly on this one.