Investor · Irwin, PA · Member since 2016 · 28 posts · 11 votes
I have a house that I put in a cash offer in on for 60k. It's a short sale and they countered at 65k. The house is in a solid B area. It needs a little bit of work no more than 10 K to get it looking great. The houses in the neighborhood are going in 100,000 to 120 range. I'm looking this as a buy-and-hold and I figure I can get at least 850 a month for rent. I'll refinance and cash out. I will most positive this is a good deal I just would like someone to make me feel better about it LOL. Thanks guys!
@David Wilson curious why you would want to buy and hold... whats a few rental houses going to do for you when you have the ability to generate the kind of flip profits your talking about.
one thought is to flip until you get a sizable chunk then buy a 10 to 20 unit.. if you want to be in the rental business.
Now I get the tax treatment and all.. but the scenario you describe is very very good. IN many markets you would have to spend 200k to make that profit were your only in it 70k.. those are homeruns.. maybe you just don't realize how good you have it.
Well for one... rental houses provide better (best out of ANY investment?) tax advantages than flipping, which provide no shelter or benefit that I can think of. Plus, flipping is more work in most cases.
@David Wilson curious why you would want to buy and hold... whats a few rental houses going to do for you when you have the ability to generate the kind of flip profits your talking about.
one thought is to flip until you get a sizable chunk then buy a 10 to 20 unit.. if you want to be in the rental business.
Now I get the tax treatment and all.. but the scenario you describe is very very good. IN many markets you would have to spend 200k to make that profit were your only in it 70k.. those are homeruns.. maybe you just don't realize how good you have it.
Well for one... rental houses provide better (best out of ANY investment?) tax advantages than flipping, which provide no shelter or benefit that I can think of. Plus, flipping is more work in most cases.
it's a little above what I prefer on a deal, but it still seems like you are protected. I'd hold it bc the flip would not profit you nearly as much as renting a couple years and leveraging the equity. You won't be underwater on it and it sounds like it isn't your first rodeo.
The best advice from above is what my realtor ALWAYS says to me, "what's it worth to you." Sounds like you answered your own question and just needed a sounding board.
Kurt Gardner yes I would rather hold and have lots of equity over a quick 20 or 30k. I like the deal and the neighborhood but it's always nice to get input from others.