Newbie With A Question
Finally started to look for properties to purchase. I'm selling my condo, my hubby & Iboth want to generate income from whatever we buy (he's wants more rental properties already owns 1) I want new home & rental. We found one that's listed @ around 370K in a prime area but needs some interior work. Thinking of making offer of 300k. Hoping to fix up live in for 2 yrs and then sell and flip a profit.
Does this sound like a good idea? We're sure we'll be able to get around $400K for it. Repairs are minimal (new kitchen cabinets, sand hardwood floor, and finish basement, which we can do ourselves).
Your thoughts....Any info is appreciated.
Two points from your post make it sound like a good idea:
- Hot area
- Doing the repairs yourself
I know where you are in Jersey and with the economy turning, I don't see how you can go wrong.
Just keep in mond anything can happen in two years and the bottom could fall out. That's your risk. So if that happens and you can live in the unit under 'worst case' scenario, it sounds like a great deal.
Good luck!
I like the fact that you are doing the repairs yourself, definitely a plus, however as a realtor and a real estate investor, there are some questions. How, exactly, much of a fixer-upper is this home? Have you taken a long, hard look at the home inside and out? How long has that property been on the market? Have you gotten comps on nearby houses? If you have, and still see it is a great deal, then, and only then, would I go through with it. The reason I say this is because I deal with people all the time that bought a property, speculating the property would go up in value, only to find out that when all was said and done, they can only break even due to a downward turn in the local real estate market. What I would probably do if I got the house, especially with over $30,000 in equity, would be to sell the property for a profit and roll the profit into the investment property you wanted to acquire(almost no risk at all, quick, and simple). That is just my opinion, but only you know the specifics of the deal, so just do the numbers, they never lie. If you are justlooking for a good place to live with almost instant equity, that sounds like a good plan. Let me know how it turns out. <IMG SRC="images/forum/smilies/icon_cool.gif"> [ Edited by SirChristian on Date 12/30/2003 ]
I think the first step in RE investing is for a home of your own. I don't know the circumstances of this potential sale nor the amount rehab will cost you.
I started this way but I wouldn't --if I had the opportunity to start again. Doing the work yourself takes time and time is money. Generally there's a lot of time and tears involved. I think you can more productively use your time.
I am with Sammy. It's tough to conquer when the castle isn't finished. All the time you spend working on your home is time not spent working a plan. Timing the home purchase/rehab a few years from now, once you have some other properties maybe an option to consider. Just my 2 cents. Either way, best wishes and Happy New Year...
To Everyone,
Thanks for the advice. I'll keep you posted on the outcome.
Here's to a Happy, Healthy & Prosperous 2004.
Lacey