Posted by mike(ia) on September 19, 2002 at 23:18:38:
I dont know your finances, or credit ability, but since this is your first deal, and you say that rental market is tight, i may consider flipping… If it looks the way I see it, you have a potential 35000 profit margin, assuming your numbers are correct… Take the 35000 buy another
flip it pocket 70000 cash
flip it pocket 105000
Do four deals a year, a possible 140,000…
Then go out and blow thirty percent of that money on down payments for rentals you can own…with no bank headache…just write the check for twenty percent down. Or do what I would consider, take that 42000 and build duplexes…write off the 42000 as a material expense through a construction company you own…You have good incentive and a possibly very profitable deal…Good Job!!!
Posted by Hutch on September 19, 2002 at 19:33:00:
After months and years of reading, toying with the concept I have finally made my first purchase. A 3BR 2BA SFH of 1344 sq ft and a 1344 basement (unfinished), new Hot water tank and new gas furnace, well kept home. Property is large lot for the subdivision 167’ front, 193’ deep and 120’ back. Nice neighborhood with good property values and great schools. Purchase at estate auction for 61,500, comps range from 87,000 to 97,900. Attorney is sorting out a minor title problem. Should close in one to two weeks.
I have considered flipping, L/O, or renting. Rental market is tight and for this area $800/month would be good. This property’s taxes are $940/yr and insurance is $230/yr. Any suggestions regarding best approach to take.