First potential deal..when to pull the trigger?

Question

If anybody is familiar with the Pittsburgh housing market please help. I believe I found a good deal in an area that will definitely sell. Found a house for 55k and feel like with the AVR I can ask between 120 to 150. But my only two worries are 1. I only been educating myself for the past month w books and the biggerpockets podcast, should I pull the trigger now or wait a little bit more and 2. When is the best time to flip a house in Pittsburgh. Is it smart to have a house ready for summer for a potential buyer or buy it now and hope that the winter weather doesn't affect when the house could be sold? Any suggestions will help.

Bob Mason · Answer

Piggie backing on what Pete said, what does the Realtor on your team think it's worth after repairs? What did your contractor say the rehab would cost? When you have those two critical people on your team, and they give you those numbers, then you can back into your Maximum Allowable Offer. Imho I wouldn't pull the trigger until you have a good Realtor and General Contractor on your team.

Matt McCarter · Answer

There are plenty of ones that have been around for awhile. I'd look for an organization with a team. One person simply can't beat the teams of 10-15 that many established ones have. Ask them for three referrals if you are skeptical.

Corey Drexler · Answer

@Andrew Li from what I could tell the houses needs paint, remove carpet but some hardwood in and then update kitchen and bathroom. And honestly I knda but eyeballed the ARV but I have my contractor who I will have look at the house with me in the future, if I decide to go through with this one. I kinda figured winter played a part into and we all know Pittsburgh weather sucks sometimes so Im glad you gave me some feedback on that. THANK YOU

@Bob Mason Thank you for your response and yeh you guys are absolutely right and will not do anything till I have those people ready to go.

@Matt McCarter i dont mind wholesalers but I dont want to be taken advantage of, how and when do you kknow you can trust a wholesaler?

@Dominic Lucarelli well the comps were from 100 to 115 so maybe my ARV was a litle high before I met with a contractor. Ill have to get my realtor to show me the house but the floor plan is nice and its in a nice area, somehwat a busy street but an elementary school located only blocks away. thanks for your response you definitely asked good questions for me to remember to ask myself and my contractor.

@Marcelsio Woods I hope everything runs smoothly for you over there in Arkansas. I need to educate myself moreon the 70% rule as well. But thanks for the support I wish you nothing but success as well.

Corey Drexler · Answer

@Peter Vekselman sorry for the late response and thank you for your input but I like what you said there "trust but verify". I havent actually gone into the house just yet but I havent made a deal yet but I have friends who work in each of the fields that would require to flip a house. But trust me ill remember what you said and sorry you lost out on those deals.

@Joe Villeneuve But it seems like a good deal and unfortunately i havent made my first deal yet so Im hesitant on what I should do in this situation. But your probably right, Il have to study that areas market a little but more.

@Quarn Corley BIG THANKS to you. I appreciate the good vibes. But yeh I need to study more on how to make sure the deal is right. Myabe my post was a little premature. But I hope your market is treating you well.

@Anthony Angotti the comps are from 100k to like 115k. So maybe the 125 to 150 number was a little to high. The house was locatedin Stanton heights, near Highland Park and Morningside; any info on those areas?

Marcelsio Woods · Answer

I too am educating myself on wholesaling, getting all my information together before I jump out. I'm still a little shaky on the 70% rule, even though I know its just a general rule of thumb.

But good luck to you and I wish you nothing but success

Dominic Lucarelli · Answer

After Repair Value (ARV) will be based off your comps. What's similar to your house that's sold in the past 3 months? Those are your comps. If you can't find them, get a good realtor to pull them for you.

Now, that house that sold for $180k in your comps, what does it have that your current target does not? New windows? New roof? Granite counters? Brand new bathroom? Yours better look better than that one to pull in $180k. Is it in a prime location? Located on a busy street? These are all factors that will make or break you.

Gather all the facts before diving in. They will tell you if you have a home run or a money pit.

Matt Faix · Answer

@Corey Drexler what area of Pittsburgh is the property in? As the other posters have mentioned, make sure your numbers are right. You'll want to account for all repairs, holding costs, marketing, closing costs, etc.

Also, 120K-150K seems like a wide range for ARV. Try and narrow down your comps and that should help.

Matt McCarter · Answer

If I were you I would do my first few deals with a reputable wholesaler. They're going to have a lot more experience that you can leverage down the line. It will cost you a little bit more up front but I believe it is well worth it.

With disclosure I do this for a living, but I believe in it.

Andrew Li · Answer

@Corey Drexler There is a lot of things to consider here.  How much work do you plan to do, full gut to just cosmetics?  Does it have parking? How did you come up with the ARV?  Winter does play into it.  We just had a project sat on the market through last winter.

First potential deal..when to pull the trigger?

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