I'm Ready To Take The Plunge, But Which One Flip Or Keep
Okay here is the problem. We(hubby & I) started looking at homes a few months ago. We have just recently found a multi family a realtor showed us that is a foreclosure. Plugging in the numbers we see excellent cash flow for keeping it (after the repairs). Also, we see the profit in Flipping. What are the pros and cons for both. Yes I know the majority, but I still can't decide. Maybe with this being our first investment property I'm begining to experience to much jitters, fear, doubt,etc. lol. Thanks for any advice you may have.
Oh, and one more thing what complications may arise if we close "As Is"??
Deb 
AS-IS seems to be becoming a more and more common closing condition.
AS-IS, means if you find something after escrow or your contingency period is over. You can't go back a aginst the seller.
So if he fails to disclose lead, asbestos, strutural problem, rooms not build to code, etc. you need to find these things out on your on.
as for flip v. hold, do you want to have a chunk of capital tied up, and get a monthly flow, or do you want to have free cash to buy the next?
Right now I'm in the flip mode as generating current cash rather than a flow is more important to me.
it all boils down to are you buyiny it for long term investment {hold it} or short term { cash now }. you just have to decide which you want.....kenmax
p.s. "as is" know how to intensively inspect the prop. or have someone experienced that you can "trust" do it. look closely "as is" can mean the seller is trying to hide something. amost likely not but it always raises a "red flag" for me. the odds are they are just saying " i want to get rid of it!" be careful........kenmax
Thanks so much for the different ideas and concerns!! I guess a flip is looking better. Then we would be able to continue with this new REI and look for other investment properties. Yes the "as is" made me nervous, but I do know the bank wants to get rid of it. We have decided to write the exit strategies, subject to inspection, contractor estimates, etc. We'll be making the offer soon.
Thanks again
Deb
Keep in mind that as soon as you sell you never see any more profit from the property. If you keep it you generate positive cash flow and then can sell later with more equity.
Max,
I think that is why I have the dilemma!! You hit it right on the head!! My husband and I have discussed that when we are done with the repairs on the home we'll put it back on the market. However, he thought we could have tenants ready...just in case it sits for awhile. My conceren with this is should we consider different financing options if we are going to keep the m/f ??
Thanks, Deb