2 bedroom good idea to flip ???

Question

so I just saw a property come on the market for 13k ! doesnt seem to need more than 20k or so in rehab .

im just unsure because I hear conflicting things about investing in 2 bedrooms.

are could be between 50-60k maybe more if I were to put more into it

Dave Schmidt · Answer

@Nick Gee Remember people buy houses everyday. I have sold single wide trailers on lots, it all comes down to the deal itself.

You need to spend some time doing due diligence on the following: what will the repairs be (allowing for a 10-20% buffer in the case of unforeseen circumstances)?, What is the conservative ARV (I would confirm this with an experienced realtor familiar with the neighborhood)?, and How will you fund the deal and what will your holding costs be total (interest on money, total time for project completion, insurance, utilities, taxes, etc.)?

Once you are sure of the details in a deal then you won't worry about whether it will sell.

Bruce Woodruff · Answer

The possible problem I see is with your statement 'doesn't seem to need more than 20k or so in rehab'

How do you know this? Have you gotten written bids from licensed Contractors? Any property that sells for $13k is more than likely to need serious repairs.....what if the repairs come to $40,000? Do your numbers still work?

Jonathan Styer · Answer

If the numbers work and you think it will sell when you're done do it. Smaller buyer pool for 2 bedrooms but they sell every day.