Pittsburgh Flip: drop price or wait out the storm?

Question

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?

Preston Gealy · Answer

@Michael Scott this flip is in new kensington so the market is cooler than hot Cranberry Township.  I ended up lowering 10k today so we will see what happens.  I partnered with another investor and he does not want to keep it. If we drop another 20k, we will break even

Joshua Messinger · Answer

Hey @Preston Gealy!

Given the current market in PA this one really depends on the strategy you're looking to move forward with in the next couple of years. If you're trying to continue flipping I would try to sell ASAP so you can get back into another flip that could potentially make you a profit. Otherwise, I would recommend renting it out on a short-term or long-term basis depending on the type of risk you can stomach. Short-term will most likely give you better tax advantages but long-term is much more secure especially if you're in Pittsburgh.

Hope this helps and feel free to reach out if you ever need anything!

-

Josh

Bill B. · Answer

Assuming to plan to keep flipping, you sell asap for as much as possible and start over. If you’re fine flipping or have extra money you turn it in to a LTR fir at least a year to cut the taxes in half while hopefully turning a profit to wait.

Bob S. · Answer

Sounds like you are trying to time the market, bad Idea. Does up or down 10k make a big difference ? If not sell it . OR rent it and hold onto it for years

Bob S. · Answer

Please connect with someone doing deals, learn then apply what you learn. DO NOT buy anything ,,,,,, yet

All the best

Preston Gealy · Answer

@Bob Stevens how do you choose a good one?

Bob S. · Answer

Contractors are the worst. It took me years to find the right ones . I have 25 can use 45, NOBODY wants to work,,,,,,

Preston Gealy · Answer

@Bob Stevens I'm in with an investor who doesn't want to rent it out and just wants his money back. My thoughts are to drop and get rid of it and consider a rental with the money that we get back. Right now it seems rentals are the way to go (like investing in gold vs startups) while the market settles. Flipping has been taxing for someone with a full time demanding job. I may consider BRRRRing in the future but it may be time to retire from managing flips and rentals to just focus on rentals. The Pittsburgh contractors have really hurt my business. For me 10 out of 10 contractors are crooks.

Preston Gealy · Answer

@Oren Kachel yes the area we are in is seeing prices dropping like flies

Pittsburgh Flip: drop price or wait out the storm?

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