What to do? Finish It or Cut the price?

Question

I've been wanting to write the "last 3 years of real estate flipping" blog post but I still have this one nagging property.   While I love investing I ran into a problem with an underperforming/overpromising contractor and I'm stuck.

Not to bore you too much with my back story or personality but I want everyone I work with to feel valued and really want them to hold up their word.  I might even allow them a little "grace" in order to finish something.

I messed up BIG TIME and just let something go on too long...

That brings me to the question

Q:  What do I do?  Lower the price or fix up the home?

I have a home (3/2 ranch) with almost no curb appeal.  I'm wondering if it makes sense to spend the money on the curb appeal, the finishing touches in the home or just lower the price?

I know the short answer might be "both" but obviously I'm working on a budget.

The question arises from that balance of profit vs time.  Does anyone have a good rule of thumb they use to determine when to cut a home and move on from a flip?

Senthil N. · Answer

Forget everything that has happened up to now.  Treat this as a new investment and work the numbers out between fixing and selling or just selling.  Everyone gets tired of a property after a while and are willing to dump it so they can move on.  While that helps your move forward it may not be the best financial decision.  So re-evaluate and the direction will be obvious.

Jassem A. · Answer

if it is becoming more of a financial burden than anything then I would go ahead and finish anything major off and then auction off the property