How much would you invest in flipping this house??

Question

I am thinking of flipping a house, (I have never done this before) it's not in shambles, just needs some updating. Built in late 1970's, it was once a 3br house, but they knocked down 1 wall to make it a 2br with a large master br. So it would need a wall built for the 3rd br, new siding, new exterior doors, some interior paint, new countertops in 1 bath & kitchen, new vinyl floors in kit & 2 baths and new carpet in family room. No major construction needed (I don't think). I can buy it for $150K in an area where avg home selling price is 250K and avg price in that specific neighborhood is $230K. How much money would you invest in this deal if you were to do it? And if you have done a deal like this before what are some tips/advice? Thanks all!!

this was an old lady's house that she had not had the time or money to keep up with, she has moved out since she is getting sick and her family is just looking to sell it fast to get it gone. Being a 2 bedroom house in this area is a major detriment, since this is a family neighborhood and many will pass right up on a 2 bedroom house needing work.

Answer 1

If you have never done it before, you are probably better off starting small with a house that needs ONLY cosmetic improvements, such as painting and landscaping. Hanging walls are much too difficult and very labor intensive for someone who has never done it before.

Once you have experienced the entire work involved with purchasing, improving, and selling a house that needed only minor repairs, you would be in a much better position to take on more ambitious projects, including being better able to deal with contractors and real estate agents.

Answer 2

let me guess here, you're tv has been broken for the last year and a half? Oh and your car radio doesn't work very well either? And you don't have an expert assisting you in making your decision that you have you go onto a venue like yahoo answers to get advise. Here's mine, coming straight atcha from a realtor, be very careful. Flipping a house may not be as easy as you think. Sometimes there are unseen issues. My best and FREE advise, get a complete home inspection ($375-$500) before you purchase. Write a contingent offer based on that inspection, so that if there is ANYTHING you don't think you can handle fixing, you get your money back and the contract is cancelled. Second piece of FREE advise, just get a realtor to help you. the amount of money you invest in a property is something only you can answer. Pisst, most of the folks here are kids, looking for positions other than working, if you get my drift. Be careful and good luck!

Answer 3

this house will probably be gone by the time u try to buy it...if its a good deal...

otherwise, let me tell u people dont just sell a property for 150K and lose 80 thousand dollars....something is wrong..

you need a home inspection...to find out what is wrong with this property...

how much land is there? are there termites? how are the pipes? electrical system? how is the plumbing?

are all the codes up to date as far as the town is concerned?

Answer 4

Sounds like it would be worth it if you know what you are doing as far as the construction. If you put in $25,000, and can then sell it for $250,000, that would be a nice profit. You would be taxed pretty high on it though. You should check to see how the local real estate market is holding up also.

Answer 5

I'd probably put 40-50K into it. 200K total investment, and if you sell it for 250K, that would give you a healthy profit

Answer 6

Only as much as I could afford to lose.

For example, if you have $25,000 to risk and you believe it is worth it. Go for it. However, if it requires $50,000 and I didn't have that disposable income, I'd rethink my strategy.

Answer 7

talk to a builder