wait or move forward?

[Tony G]

From a previous thread i stated my plan and goal was to make minimum 20k on a property. Mostly everyone had advised me to tough it out and wait. However, upon doing more research and talking with other investors as well as my agent, they say 10-15k would be the norm at this point and time, due to the high buyer demand for foreclosures. Foreign investors and career flippers who sell 5-10 a month take just 5-10k profit making it harder for new investors to compete, as well as other investors putting in high bids.

With that being said, do I get a project going and take the 10-15k due to market conditions right now since there are more potentials in that range, or do I wait a little longer in hopes of more foreclosures to hit the market for a higher return? Is it better to get the experience as a trade-off for higher returns?

My partner is a handyman and can do about anything except knowing if the property is structurally sound, mold present, no major plumbing issues, etc. So what's the best way for us to have peace of mind WITHOUT having a upon inspection contingency?

[James H.]

I don't think I would wait for more forclosures to hit the market. That strategy is tantamount to waiting for the market to "bottom out". If the rate of foreclosures never increases, you'll never do anything. Just make sure the deal is good (or try to make sure) and go for it. Fear will hold you back far more than the market.

Regarding 20K profit margin, I've only rehabbed one house and kept it as a rental, so I can't add anything to what Don said. But having done a rehab on a rental and a full exterior rehab on my personal house (all with my own two hands except an HVAC system), I would say that it is VERY easy to go over budge and probably impossible to not go over budget on your first couple.