Small Flip Rehab Deals?
Hello all,
I currently have one duplex that I house hacked and am looking to build more capital to acquire more rentals. To this end, I'm looking to do a few flips in the near future. The strategy I'm looking to pursue is low to medium range purchase price, mostly cosmetic repairs, with a moderate ARV. The numbers of the type of project I'm looking to do are:
-$60,000 purchase
-$25,000 rehab
-$115,000-$120,000 ARV
Again, that's just an example, but that's basically the type of project I'm looking to do initially. I'm looking to this specifically because of the lower threshold to entry, smaller scope rehab, lower ARV would theoretically leave the door open (no pun intended) for both retail or investor buyers depending on area. Or, if worst came to worse, I could just refi and put a tenant in myself.
My question is: Why does it seem like most rehabbers forego this type of project? I could be wrong, but it seems like most rehabbers are looking for that $60,000 purchase they put $100,000 into and sell for $250,000. The way I've thought about it is that many are looking for the home run, whereas, this deal is a single. Is that simply the reason most don't pursue these smaller deals? Because it's not large enough? It just seems to me that the "singles" are so much more plentiful, so you could knock out a handful of those before you located and completed a "homerun". Maybe I'm missing something, though.
Thanks!