My market is the northwest suburbs of Chicago, where my company does a combination of flipping, wholesaling and buy-and-hold depending on the deal. I've had a couple of instances pop up where people call and want to sell their lakefront property at a discount. Everything has been less than 2000 sqft, with at least 100 ft of lakefront, and anywhere from 2-4 bedrooms. The challenge is, for one reason or another, it's hard to find recent sales for lakefront stuff since most people in my area hold onto them for a long long time. My gut tells me to stick to more cookie-cutter stuff since it's lower risk, but I have a hunch that there's flip or wholetail profit to be made on these rarely-available lakefront homes.
After some due-diligence, I don't see any major underlying reason for the sale other than "our family doesn't use it as much as we used to, and it's just an extra expense at this point".
I'd love to hear some perspectives on this. Do you guys pick up unconventional properties of any type? How do you price it? Do you just avoid it altogether?
It will depend on where the property is located. Is it close enough that someone would live there full time? or is it most likely a vacation property only. If only a vacation property it might be quite a bit tougher to flip. If someone could live in it full time base your numbers off comps that are not lakefront and add just a little bit on top of your asking price. Don't bank on the lakefront to bring you profit, treat it like a bonus.
Thanks for your input @Aaron K. ! I would classify these properties as vacation homes, for all intents and purposes, due to the fact that they wouldn't make for practical full-time living quarters (lacking storage, no garage, large deck and yard in lieu of indoor entertainment areas).
I like the idea of running the numbers as a regular full-time home in the area, but most of them only compare by beds, baths, and sqft...almost nothing else. Big picture, from a risk perspective, I suppose I had better know the area really well, by some other means, so I know a deal when I see one and can price it appropriately. Otherwise, I feel like I'm really taking a gamble.
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