Flipping vs New Builds

[Thomas Weidner]

Good morning everyone. Today I would like to ask, what you folks prefer more flips or new construction and why? I know each have there pros and cons just as every avenue of real estate does. So why do you do what you do?

[Corby Goade]

Disclaimer- I have never done a new build. With the cost of materials, it can be very expensive to build in my area. Not to say you can't make money, obviously you can, but the entry point is much higher. I also feel that it is easier to have multiple exit strategies when you buy a property that needs rehab. For instance, here, I can find a 3/2 fixer for around $150K, I could put a few bucks in to it and sell it for $225K or rent it for $1500. If I were to build a 3/2 at 1500sf, there is no way I am starting under $250k. With fixers, you generally have fewer permitting hurdles to jump, shorter time frames and it's more likely you can put more of your own sweat equity in to it. I'd love to hear from someone who disagrees and learn a thing or two!