Flip Or Hold?

I have found a FSBO that is being sold under market. The sellers never did an appraisal and are going based on sales prices a few months back. The home needs basic paint and carpet, nothing outrageous. Seller is including a few thousand for this at close. I have had two appraisers already tell me that as soon as I got it, I could place on market for about 23k more, no problem. Comp homes nearby are selling for as much as 40k over the price I am getting it at.



The market is going up so fast in Florida right now, I wonder if I should just fix this home up and flip? Or hold for a year and rent? Probably making more money. I already have somebody who wants to rent it right after I close.



I am not in a crazy market like Miami or Naples, but our RE is going up rather fast.



Either way, I do not intend to do a long term hold on this property as I will be moving back out west in a couple of years.



If I flip I can make at least 20k, if I fix the home up nice , using little of my money I could probably push it up to 35-40k profit, before taxes.



Flip or hold?



Thanks!!

Comments(8)

  • TheGodFather4th October, 2005

    If you can hold rent it out and cash flow in a market that is increasing like floridas, I see no reason not to hold.

    If you cant cash flow on the rent paint it carpet it sell it and take your profit.

    my 2 cents

  • slcunk336068th October, 2005

    Looks like we are going to flip.

    Thanks.

  • InActive_Account15th October, 2005

    Make sure you can define "nothing outrageous" and put a price on it. Little things add up in a hurry and can eat away you profit. get good estimate and do your research - always get a second opinion.

    Good luck

  • getitqwik9th November, 2005

    Who is going to list it? Are there selling expenses you need to consider? How long before you think it will sell? FLIP IT. My idea is as always in situtations like yours....getitqwik!!!!

  • BBagnall13th November, 2005

    Good luck in getting it sold. Let us know how it goes.

  • jimandlacy13th January, 2006

    Congratulations!!!!

    Man, I love these first person stories.

    Jim

  • mcole13th January, 2006

    slcunk33606,

    Nice deal!
    Congratulations!

    : )

  • newattitude16th January, 2006

    Thanks so much. I am on it! Lots of research today. I will tell you what happens.

Add Comment

Login To Comment