From most of the posts ive seen, i see flippers discuss how the numbers make it a good deal? However im curious as to what they deem flipper worthy in a cosmetic way. Like an abandoned house with mold and doors is an obvious choice, but where is the line drawn between destroyed and updated enough that competition will buy house regardless of its appearance?
@Landon Dolezal its all about the numbers, I just looked at a house the basement walls are falling in 12-14 inches (about to fall over literally) and I still made an offer, just alot lower offer. I will look at any house, and make an offer if I can still make money, now I might only offer you $10.00 for the house but its about the numbers.
No I get that part, when it needs ridiculous help but house that are just outdated but are still in decent condition, there's a lot mor ecmpetition I'm assuming because it's more live able, if you know what I mean. So I guess my question is do you only go after the houses that no one else will buy cuz it's off the deep end?
It's always about the numbers. First, the Acquisition Cost (i.e., Price, Down Payment and Loan Costs). Next, the Repair Costs. Next the Holding Costs ( i.e., Mortgage Interest, utilities and other). Finally, the Sale Proceeds ( i.e., Acquisition Cost less other costs),
@Landon Dolezal I agree: it's about the numbers. You have to figure what comparable houses are selling for and how much it would cost to make it like them (or a little better). The old saying that money is made in real state at purchase, is absolutely true. So a house in bad condition allows you to get it cheaply.
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!