Wholesale for profit or rehab for bigger profit?

[Terry Royce]

So my partner and I have 2 deals on the table that we were looking to rehab, however we received an offer from another investor that would allow us to make a $44k profit now

or we could rehab and look to make $90k or more by rehabbing. Trying to get others opinions on what they would do in this situation, or variables they would analyze.

Deal Details:

House 1) Purchase: $50k, rehab $50k ARV; $165-170k

House 2) Purchase: $134k rehab $30-35k ARV; $280+

[Crystal Smith]

Originally posted by @Terry Royce:

So my partner and I have 2 deals on the table that we were looking to rehab, however we received an offer from another investor that would allow us to make a $44k profit now

or we could rehab and look to make $90k or more by rehabbing. Trying to get others opinions on what they would do in this situation, or variables they would analyze.

Deal Details:

House 1) Purchase: $50k, rehab $50k ARV; $165-170k

House 2) Purchase: $134k rehab $30-35k ARV; $280+

Here's what we do in these situations. Figure out what your annual ROI would be for selling it now, versus your potential annual ROI if you sold it later. Don't just determine the ROI, it's important you determine the annual ROI. Time value of money is important. If the annual ROI from selling it now is large compared to the potential from selling it later then sell it now.