Is a Bird in the Hand Worth 2 in the Bush?

[Alecia Loveless]

I’ve got some capital from a recent property sale and expect to have about 200% more in another 2 months that I had planned to use half of for a 1031 and some of all the rest to leverage the 1031 into a much larger deal.

I've been watching a SFH in my market that's priced really affordably and two days ago had the price lowered on it. My realtor contacted the selling agent today and set up a showing for me and got more information on it. It probably needs about $35,000 worth of work to it. Given its location it likely will never appreciate greatly but if rehabbed correctly will be a home run property for cash flow and down the road will recoup my investment in both purchase price and rehab.

My realtor presented me afterward with a 3 unit he plans to bring to market in the time frame of me selling my 1031 property. It will be priced so I could do the 1031 and use some money of the other capital I have and get a small mortgage to buy it. Two units are currently rented and the third unit “needs work” to be rentable. But the realtor says I will love the location and the property and it will be a money maker. I’ve worked with him for 20 years and he knows my tastes.

I believe I can buy both, but the rehab on the third unit of the 3 unit may have to wait awhile.

Does everyone think I should attempt to buy the first SFH as the second is not guaranteed and see what happens down the road assuming the SFH shows well when I see it and etc. and play the second one by ear?

I know nothing is guaranteed in real estate, just want to make sure I’m making the right decision on this.

Thanks for helping me make the right decision!