28 K Today Or 70-80K In 4 Month?
Hello I got a house and I got it for cheap,
I have not closed on it yet somebody offered me about 28 K over my purchase price but If I fix it in abbout 4 month I know at least i would make 70-80 K, which would you choose?
Thanks 
how many deals come along that you can make 70-80k ? how hard would you have to work in order to get a similar deal. i would go for the rehab and wait for the pay day that's assuming that you can fund the project and hold on to it until you sell. if you can do that then i say go for it.
Thanks john, and lp1, I guess I'll go with the improvments and then sell, I think I can make the time and same goes to the funds, I'll let you know what happens.
If you are a beginner I would opt to sell now. Why? Because with nearly $30k cash you can likely make a lot more than $40k more in 4 months! If you have the cash to fund future deals, then it might not be as important to have cash right now. I'm strapped for cash now so I'd sell it in a heartbeat!
GOOD LUCK
I was in the process of buying a house and someone offered me $10k to walk away from it. I didn't take it. I have 6 tenants there, I had to evict one, I am in the process of evicting another, spent some money to fix up things, still I am breaking even. I can make money once I rent those 2 units and finish the 3rd one. I feel I can get at least $30k over the purchase price if I sell now.
"A bird in the hand is worth two birds in the bush"
Quote:
On 2004-03-10 13:17, myfrogger wrote:
If you are a beginner I would opt to sell now. Why? Because with nearly $30k cash you can likely make a lot more than $40k more in 4 months! If you have the cash to fund future deals, then it might not be as important to have cash right now. I'm strapped for cash now so I'd sell it in a heartbeat!
GOOD LUCK
I would agree with myfrogger, not because of not having money. But because if I can make 28K without doing anything I will. I would rather have an easy 28K than a maybe 70k
Lori
[addsig]
In my opinion, you got to answer this question for yourself. Without knowing the scope of the work that could yield extra $40K, NO ONE can trully unswer your question correctly.
Without knowing the details, I would counter the $28k offer. Maybe for $35k or $38 k, you would agree to sell now. Which, by the way, I certainly would do. $35k profit without doing any refurb. Take the money and run to the next one.
Quick answer to...
"28k today or 70-80k in 4 month?"
The answer is $80k in 4 months...
28 k now is tempting, but at pay day you can look at it like you made 20k a month over the past 4 months!! 80k vs 28k BIGGER IS BETTER
JB
[addsig]
What did you decide?
Lori
[addsig]
i would take the 28k now without all the work involved, sign your name a few times and keep your hands clean let the next guy worry about theroof or if he can get it sold when its finished i just flipped 2 houses made 75k on 1 and 40 k on the other all i did was make a few tele calls
Might I suggest you negotiat with the person that made you the offer and see if you could get more. Your profit numbers look good, if you showed your possible buyer that then possibly you could squeezy 10-20K more out of the quick sale.
Just my 2 pennies,
James