Rehab Or Flip? Please Advice

I bought a Rehab SFR last month for 108K. The property is currently rented to a nice family. They pay their rents on time. The property need a lot of cosmetic work and some exterior work. Estimates are around 15K-20K to bring it to standards. I plan to start on the exterior first, then have the tenants vacate the place and then do the interior. FMV for house in the area are around 175K - 185K. Yesterday, I got an offer from a rehabber/investor for 140K Cash. Do I Flip or continue with my rehab plan?
Thanks for the advice

Comments(4)

  • jam20017th September, 2004

    "A bird in hand is worth 2 in the bush."

    Take the money and run, you don't KNOW what the market's gonna do in 2 months when it's ready.

  • kenmax17th September, 2004

    i would take the offer unless you are exp. in rehabb. even so i would take the offer. you said he "offered" 140k how about a counter with a higher price. the 140k offer gives you 32k while rehabbing "may" give you in the 45k range, minus holding expense. the rehabb project will take months. i'd go for the offer but as i said i would try to milk it for more.....km

  • lcorp17th September, 2004

    if its an old house I would sell it

  • bnorton17th September, 2004

    Lets see, 30K profit in one month, or spend 20K and have it vacant for a while. . . Flip!!!!

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