Should I fix up home, or let it go to auction ?

Question

Hi BP, Im here on the forums today due to  A important family matter, I recently had A Uncle Pass away, and with no next of kin my mom received the title of administrator of the estate. He own a single family home with 2 beds and 1 bath, the address is 216 S Buchanan St, Fremont, OH. The home is in pretty bad condition and needs a-lot of work, Seeming to be a great opportunity for me to get my hands into the fix and flip game. The only problem is I live 4 hours away and the home might need a-lot of capital to fix up and I don't know if the juice will be worth the squeeze. I also plan on buying my own house hack before the end of the summer, just don't want too much on my plate for just starting out, any advice or words of wisdom would be appreciated thank you !

Steve Vaughan · Answer

The 4hr distance, unless you will live in it during rehab, would keep me from buying it.

To monetize it a little, you could go under contract to purchase then wholesale it if you have someone there to show it and stuff @Colby Zeller

Caleb Brown · Answer

I'd just focus on the house hack. Sounds interesting but one thing at a time.

Ben Scott · Answer

If its your maiden project, I'd be concerned about the distance from the property. I agree with the wholesale option or hiring an agent to post on MLS.

Colby Zeller · Answer

I was thinking the same thing, thanks for validating my opinion !

James Carlson · Answer

@Colby Zeller

It's really about the numbers, right? What's the ARV? How much money is required?

I get some first-time investors in Denver and Colorado Springs that want to flip because it sounds sexy. I'm not a huge fan. To me, it's not investing. It's just a job that brings in a little money, when the real wealth comes from long-term appreciation of the asset.

Now, if you need capital to buy a rental property, that's one thing, and maybe this works. But if not, and especially if the numbers don't work, then skip it. Instead, build up capital and buy a property when you can.

My two cents, at least.

Bryan Montross · Answer

When my wife's mom's husband passed away, their home was in terrible shape. Her mom was living in assisted living and couldn't do anything with it. Surprisingly the funeral home said they could help and would buy the house. Essentially they wanted to pay the amount that was owed on the property. I proposed fixing it up and then selling it on the market and the family agreed. I oversaw and paid for all the renovations and after we sold the house I got my money plus profit and my wife's mom was able to pay off the mortgage and still have a healthy profit. This was my first flip and I was glad I did it on the property because I didn't have to worry about acquisition costs and carrying costs. It gave me a way to get a feel for flipping. However, I was only 20 min from the house. I think if I were 4 hours from the house I wouldn't have done it. Unless I knew a really good contractor in the area I trusted. I think you might be better off selling it to an investor in the area.

Should I fix up home, or let it go to auction ?

Should I fix up home, or let it go to auction ?

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