I had been pondering on getting back into real estate investing and wanted to start with a flip to get some cash built up. I mentioned this to a realtor friend of mine in passing and told him to keep his eyes open. It was really just a conversation in my mind that had no significance. Less than 30 days later I closed on this jewel.
I was very fortunate on how it all worked out. I ended up with 100% private financing for the house and repairs at a flat 6% for 6 months. Other than the roof and HVAC, I've done all the work myself and occasionally the help of a co-worker here and there.
I paid $66,500 and change after closing costs and plan on asking $134,900 when I list it. According to all my research and the realtors I've spoken to, it should be an easy sell in the $130K range. I will be into it for about $95K when I'm done.
I'm not sure if this is the proper forum to pose the question, but I'll ask anyway and take my lumps if I am wrong. I work a full time job and am doing all the work on my off days and in between 12 hour shifts. This wasn't my original plan, but my contractor ended up in jail for child support (again). I looked for a reputable replacement without any luck so I decided to tackle it myself. I've saved a ton of money, but my summer was consumed by the house and it's taken much longer than I originally planned for the reno.
My question is this; Am I better off maximizing my profit at the expense of a longer flip, or is the quick turn/less profit the better route? I've enjoyed working on the house, but I'll admit, I'd like to actually have a day off soon. I also missed out on an excellent flip last week because this one isn't done yet. Our market isn't seasonal like it used to be. Houses are bought and sold regularly year round so I'm not worried about the old philosophy of not having anything on the market outside of April to September like it used to be in our area. Either way, it's almost done. I'm farther along than the photo album shows. (I'll update it soon). I suppose I'm mostly looking for reassurance that the lost summer of 2015 will be worth it in the long run. Thanks for reading!
That question is only answered by you.
You obviously can't flip 100 homes a year doing all the work yourself. Are you happy working these hours and doing 2-3? If that's the case- keep going and save those margins.
TBH it seems to me that if you had paid for labor on this particular house your margin may have disappeared.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.