Investor · Greer, SC · Member since 2015 · 13 posts · 10 votes
Let me state up front that I am asking this totally out of curiosity! I'm too inexperienced to even consider this but I just wondered how it works.
You see on TV, and on the internet, where someone buys a home at the court steps or online sight unseen. How do people make this work. Are they using a a worse case formula that is used to rehab a house based on square footage? For example, do they buy a house that's priced so low they know they can totally redo the home and still break even on a worse case scenario? I just don't understand how even an expert flipper can do this and not lose their shirt 50% of the time? On the flip side, I'm sure some people have hit a gold mine.
Kalamazoo, MI · Member since 2014 · 224 posts · 129 votes
11y
Some of that is just TV drama. I bought a house without ever walking through it once. I knew what it could be worth based on the neighborhood. I had seen the outside. And I knew there was a 40 to 50% discount. So Even assuming a worst case scenario I would still be okay. Now as for those people here who by out-of-state sight unseen I think they are crazy and caught up in the frenzy that is soon to become another bubble