To buy or not to buy?

Question

So I currently have 2 investment property's and am house sitting for a couple years. My parents have a friend that is selling their house and it is a monster. Its a 6k sq foot house in a terrible state of disarray. All 4 decks are falling off the house, lived in by hoarders, toilets in the hallway , and stuff just falling out of the ceiling.

So the question is.... How much is to much? Anyone have any experiance flipping large houses? Is now not a good time if everyone thinks the market is going to drop?

Jose Batista Abikarram · Answer

Hey @Michael Piggott. This is a fair question and I actually heard the latest BP podcast that talked a little about this problem, I will leave the link here so you can listen to it fully: https://www.biggerpockets.com/blog/biggerpockets-podcast-349-nathan-taborIn my opinion there is no way of knowing if the market will crash now or in 10 years from today, but knowing that it is an extremely hot market and more and more people want to get in I would be a little bit more afraid. I am currently looking for BRRRR deals but I would try to stay away from jobs that would take too much time (more than 3 months) just to cover some of the potential volatility of the market. However if your numbers look great and you have the money and the time I say go do it. Even with a BRRRR deal and a market crash one of the worst things that can happen is that you do not pull out as much money as you expect it on the refi in which case you keep the building for longer and make it out with cash flow.

Curt Davis · Answer

One speaker this weekend suggested rehab projects that would take a long time which this one sounds like it would be would be not the way to go. Maybe you could flip it to another local flipper for an assignment fee and be done. Good luck