The Best Strategy (Flip? Buy Hold? Seller Financing? )

4 Replies

Hi My Biggerpocketers!

My partner and I just signed contract for the first house that we're going to fix up, here's the simple breakdown

Purchase price: 325k

Rehab: 30k-40k

ARV : 460-490k

Monthly Holding cost (Tax, insurance, Maintenance, no mortgage) : 1100

Rehab is 1 month, but if we flip and sell, I'd like to sell it around spring time so we could get as much profit during this time. So holding time around 4-5 months. 

The average rental in the area is $2600-$3100

We are still open for any suggestions, we could do BRRRR way, but not sure I want to be a landlord and is it worth paying a property manager?

I appreciate the help and any inputs.


FJ 

There is no right or wrong answer. Do you need all the cash out of the property to buy your next property? Does just 80% of ARV provided enough cash to buy your next property? Does leasing it out making a solid yearly return? Do you know a good property management company that you want to use? Does selling or holding the property help you reach your goals?

Answer those questions and you will answer your own question.

@Jon Reed   thank you for replying my questions, 

80% ARV: is about 368k and yes, at this time, it'll be enough to get my next deal

rental 2800/month would be around 33k would be 10% cash on cash return

Property Management: I dont know any reputable ones but I can find out from a friend who has their own rental on who the handyman. 

So, I was thinking alot about the strategy on buy and hold vs flipping it, so yeah... im leaning toward buy and hold more than just flip it. 

thank you again for the insights