Pittsburgh Flip: drop price or wait out the storm?

[Preston Gealy]

I have a house that I'm flipping in Pittsburgh where we listed the rehabbed house as the market started tanking. Do we drop the price to get rid of it or sit tight and wait for an upswing to make some money on it?

[Andy Sabisch]

With the upcoming interest rate hikes, the pool of buyers that could qualify for the mortgage will be shrinking so if you can, sell now even if your profit is not what you expected.  Otherwise be prepared to use it as a rental and see what happens to the interest rates.  If you used a HML, you might do the math and see what holding it will cost you which may make your decision an easy one.  Sometimes even a small loss to free up debt is worth it in the long run.  Next time consider a market adjustment when you run your numbers.  We have seen a lot of reductions which would not have been the case even 6 months ago . . . we have stepped away from flips and have picked up several buy and holds since March for that reason