All Forum Posts by: Susan Banks

This property is in a small rural town outside of Rockford. I had an opportunity to purchase low in cash. Now I am torn between financing and renting vs. flipping. The husband is leaning towards flipping due to distance (we are in Texas). We would get hit with small gains tax and would not have property. However, the home is modular and will eventually need electrical work the walls cannot accommodate, and is situated in a "dying town," according to a native resident. Given the context and the numbers, what would you do?

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*This link comes directly from our calculators, based on information input by the member who posted.

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Rockford, Illinois

Quote from @Eric M.:

Be very careful with a question like this. You are going to get very skewed responses because the audience is self selected. The people who are going to answer are the ones who are generally current investors. They are current investors because they have generally had success. The people who lost money are no longer current investors and are no longer here to answer.

Also most of the people here have only flipped in a bull market. (post 2010)

The majority lose on their first flip and never do it again. I lost 70K on my first one and didn't flip again for 3 years. Most people would not have done it again. I haven't lost on one since, but it is very common to lose money on flips. Lots of people turn their failed flip into a long term buy and hold rental and eventually come out ahead. In reality those were losing flips.

I don't know what your odds would be. Your profile says you are a contractor. I would think a contractor with some common sense would be able to make profits. And sometimes, you just consider your first loss to be your tuition.

“Consider your first loss to be your tuition.”
I very much needed that. My ego is at play being I’m a Realtor and likely to lose money because I trusted/relied on the wrong contractor. I should’ve known better and got specialized opinions. My losses are eating through that 30% and may be deeper by the time I’m done. Your quote helped me keep the right mindset. Thank you.

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Thank you!

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Good afternoon,

I got the opportunity to purchase a home in Illinois with an ARV of $100k for $30k with an estimate of $20k in repairs. My goal is growth/scaling. Purchasing cash, but taxes are high ($6000 annually for non-homestead) which is impacting the ability to BRRRR. Do I just flip it or cash out refi only $60k-$70k? Renting alone doesn't make sense due to the cap rate, and the only reason I'm considering the cashout is to increase units (keep it in inventory). Thoughts?

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*This link comes directly from our calculators, based on information input by the member who posted.

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I am in the same boat. The quotes I will get are astronomically high for trades (I’m a REALTOR and have a good idea of what things should look like) or I’ll meet contracts (2 so far) who spend their gas and time to meet me and then ghost.
On the plus side, I think it may be a sign they know they can’t get over on me or won’t have total control so they opt for low hanging fruit? Idk 🤷‍♀️

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All Forum Posts by: Susan Banks

Susan Banks has started 2 posts and replied 5 times.

Post: [Calc Review] Help me analyze this deal

Post: How often do you actually LOSE money on a flip?

Post: [Calc Review] Help me analyze this deal

Post: [Calc Review] Help me analyze this deal

Post: Contractors that don't even give a quote??