Exit Strategy

[Freddy Pettiford]

Hey BP,

My home that i currently live in i purchased for about 80k in North Carolina using a VA Loan. I have only lived in this house for about 6 months and only plan to be here for another 2 years. At that time i will be moving to another state due to being in the Military. My nextdoor neighbor has live in this neighborhood for over 20 years and told me that my house has been bought and sold multiple times and that it always sells for very close to the 80k that i bought it for.

My question is...If i want to get the most profit out of this house what options do i have? Should i start improving the house and try to raise the value, in an attempt to sell it for more when i leave in a few years? Or should i plan to hold on to the house and rent it out? 

[Alexander Felice]

What area of Fayetteville is it in? We are not in an appreciating market. 

Rentals are good here, and flipping is good if you stay under $120 ARV. Too many local builders are cranking out 2500sqft brand new homes for 200k.

I wouldn't count on any profit from the house to be blunt. There are a TON of improvements to our town in both infrastructure and new growth lately. If you live near some of these improvements you may see some appreciation hopefully, but I wouldn't count on it.