This would basically net me 25,000 and spend about 6-9 months of my time renovating
2006-10-16 12:28:40 · 8 answers · asked by Dick Tater 3 in Home & Garden ➔ Do It Yourself (DIY)
my parents want to sell it to me for 35,000 below market value because they are relocating to the other side of the city. They want out quick and know that i could use the profit.
2006-10-16 12:49:39 · update #1
Maybe. How much is the home worth? 35K below value sounds like a great deal, but not if the home is only worth 70K and you put 10K in. If you don't have the money you have to get mortgage to buy and a second for the repairs. Then you are spending more than 45K maybe around 48K, plus closings, insurance, utilities. If you get 80K, big assumption, you made 32K minus capital gains in a year. Assuming you can carry the mortgage plus your rent or mortgage where you live. Unless you live there. It is tempting but it is going to be a gamble. With the housing market today, you may have trouble later. It will sell sooner or later, but can you carry it for a 12-18 months. You need to really crunch some realistic numbers to see if it worth the time. Get a budget together, and stick to it.
On a personal note, if you have siblings you need to talk to them first. There may be resentment if they are not included in the deal. And if there will be resentment, don't do it, even if they offer to go in with you. Sooner or later, there will be trouble, disagreements, and family is too important for a bit of cash.
2006-10-16 13:15:08 · answer #1 · answered by robling_dwrdesign 5 · 0⤊ 0⤋
Bad economy and getting worse by the minute. You'll probably be stuck with it for some time........or worse yet, forever, when the bottom finally falls out of the false housing economy. I'd find a better place to put my money. Just using the word "flip" turns me off tremendously. It sounds too flippant! Tell them to put in on the market @ 35,000 below what they "think" the market value is. After all, if the house were perfect, they probably would get market value anyway with the gluttony of houses out there for sale.
2006-10-16 12:50:31 · answer #2 · answered by fibreglasscar 3 · 0⤊ 0⤋
If you are in a hurry for the money, I would check on the cost to have renovations done professionally and quickly, You will lose some of your net profit, but you could get the money quicker in return. If you are in no hurry, I say it's your time, if you can make money with it, get to it!
2006-10-16 12:33:58 · answer #3 · answered by midnightrodeo1 2 · 0⤊ 0⤋
I would. The thing is, homes aren't selling real great right now. Don't put yourself in a position where it must be sold by a certian date. Also don't forget taxes on capital gains on flipping homes that you don't use as a primary residence.
2006-10-16 12:36:13 · answer #4 · answered by morris 5 · 0⤊ 0⤋
depends on location. The housing market is so shakey now, but there are certain areas where you never have to worry... like anything in california!
2006-10-16 12:37:27 · answer #5 · answered by Anonymous · 0⤊ 0⤋
This sounds downright frightening to me and something the evil twin might do! Just think about what could go wrong...
Kabum
2006-10-16 12:35:19 · answer #6 · answered by kabum 7 · 1⤊ 0⤋
go for it.... if they sold for ten dollars to avoid estate tax or to dump assets b-4 state paid nursing home care it would be illegal!
2006-10-16 13:18:17 · answer #7 · answered by Bonno 6 · 0⤊ 0⤋
is it urs to flip? just remember if it sounds too good too b true, it probably is.
2006-10-16 12:46:17 · answer #8 · answered by Nora G 7 · 0⤊ 0⤋