Hey guys, have a question for the masses and any answer is helpful. I came across a foreclosed property for sale at 79,900. It's a 3 bed/1 bath approx. 1,768 sq. ft. now the comps. suggest re-sale value of the home (after repairs if needed) to be anywhere from $ 130,00 and up. I'm looking into wholesaling as a strategy here but if it doesn't need a lot of repairs and at this price maybe a quick flip is in order? Thanks guys.
You're numbers are fine to support either a wholesale or flip, depending on the repair costs involved. The question, in my opinion, comes down to 2 things...
1. What's you market like? How long will you have to hold the property on a flip? What's the demand for this type of property? If the property doesn't sell, do you have a backup exit strategy?
2. Do you have the finances or can you acquire the finances to take the deal down yourself? If you need financing, will your rates & capital requirements still keep your numbers where they need to be?
The market in the area is good for homes from 150,00 and less, mostly single family homes like this one. There are good comps. to support that as well. I have a few hard money lenders on hand although I haven't approached them yet with negotiations regarding this property. I would imagine that my offer would have to be accepted first before I can look for any lenders/investors. The issue I'm running into is getting into the home since it's a foreclosure.
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