New To REI
My husband are planning on purchasing a home for $150,000 fixing it with about $100,000 and then selling it for a profit of about $100,000. Does this sound like a good deal for a first time REI?
My husband are planning on purchasing a home for $150,000 fixing it with about $100,000 and then selling it for a profit of about $100,000. Does this sound like a good deal for a first time REI?
You're going to put 100k into a 150k house? Something about those numbers just don't click there... For 100k you can build nice house. But for the numbers you just ran, anytime you can make 100k on ONE deal, it's a helluva deal.
I know it sounds like a lot, but house in the Washington, DC area are selling for a lot!!!!
Hi:
My two cents.
If you are new to the REAL ESTATE
INVESTING, I would suggest that you
either start with Bird Dogging or with
Rehabbing properties. In my humble
opinion your best bet will be forclosed
properties, bank owned houses, and
probate properties.
sayana
It might be a matter of terms. Putting 100K into a property is not just cosmetic improvements. If you are doing structural things and they really move the property up the value chain (extra bedroom and bathroom for example) might make for a good investment.
One of the problem with a major job is the time it takes. If you did 2 or 3 cosmetic fix up deals in the same time you would be taking less risk and potentially making the same or more money.
Buying a small apartment building and then using the 100K to improve the units and raise the rents is also many times a better use for that amount of money.
Now, if you were buying a 900K property, putting in 100K and selling for 1.2M in three months then the numbers make a lot more sense.
John
Quote:
On 2004-05-25 18:59, wchaillet wrote:
I know it sounds like a lot, but house in the Washington, DC area are selling for a lot!!!!
[addsig]