Cosmetics Flip VS Full Rehab
Would you prefer an easy cosmetic flip with low returns or a full rehab with higher returns? why is that your preference?
Most Popular Reply
There is more to returns than this question would allude to. If I can do a cosmetic flip and have the crews that can knock it out in a few weeks so we can relist it and do three in the time it takes to do a full rehab which will have my money and attention tied up for months, the simple flip would be my choice. In a full rehab you will invariably find the unexpected which throws the timeline off and costs money (hard money, holding costs, utilities, etc.) If your goal is to get your money turned, a 10% return in a month versus 40% in 6 months seems to be a no-brainer. But if you have the financial resources and the trades ready to rock, run the numbers and see what option works best for your specific project. We have switched strategies on some projects when we ran numbers and getting in & out is also the goal on a flip.