I bought a house 2 years ago from a friend in Squamish, BC. for $490,000. 1100sq ft 3/1. Nice yard. He continued to live in it until we completed a nearby development project, which was just completed yesterday. He moved out, and I took some of my stuff out of storage and moved it in. I'm renting out a couple rooms for the winter season to a couple friends, while I figure out what I want to do with it. (I live in Las Vegas).
I'm here now writing this. My friends are in the other two bedrooms. My wife and toddler are visiting the inlaws.
These are my options...
1. Acquire an adjacent lot and develop 6 or 7 townhomes. Easier said than done, could be years, or impossible and after everything, my profit will be about 4 - 500,000.
2. Develop in into a duplex or triplex. After everything, profits will be about 300,000 if I'm lucky.
3. Sell as is, I'd have about $350,000 profit.
4. Make it my home.
Now, my wife wants to make it the home, but it's small and old. I've never done a full on rehab floor to ceiling. Wiring. Furnace. Breaking down walls. Installing a bathrooms. But that's what it would take to make it decent.
I was able to refinance and pull out $225,000 which I've been able to reinvest on other projects already.
Just look at this sexy paint job. Makes me want to puke.
Get over your cosmetic complaints, and only go with what the numbers tell you!
(Seems your wife already got that message. Time for you to catch up). My 2c...
That is what you call gross? You should visit some of the house I have been in... :D
With that said, looking at your numbers, why would you not sell as is? $350,000 profit in a few weeks, verse develop and make $300,000 if your lucky, or try for years to buy other property and make it townhouses for $4-500,000.
The final option of moving in, is this where you want/plan to live forever? If you don't move in, do you have to buy a house in the area anyway? If you do, and an 1100 sf 3/1 that needs work is an $840,000 house, what kind of money will it take to buy a nice, larger house? I would entertain the moving in, assuming the housing market out there is insanely expensive.
$350k today > possible money tomorrow/next year/the year after/etc.
Originally posted by @Colleen F. :
I'm confused. you live in vegas, this house is in BC and you live there now and your wife wants to make it your home. Not sure if this is an investment question or a personal lifestyle question. If you are committing to live in BC full time and you can make a profit off a fix and flip do it. Even a light rehab is going to profit over selling it tommorrow the way it is. Easier sale. Lot next door doesnt matter now. Give your wife the opportunity to vet the area and the house before you sell. It is a partnership. Now if this would be a second home it is a different decision you have to decide if you have carrying costs whether it is worth it and subtract those off your projected profits. what direction is your market taking?
Yes, it is confusing. I have several businesses, and one of them is in BC. So this is a second home for now, then I suppose when I'm ready to move here full time, I can make the move. The lifestyle choices are complicated for me, but I digress.
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