Buy a light flip if you had to hold it 7 months?? pitfalls?

[Carson Wilcox]

I am pursuing a property... It has been on MLS for a bit... they started it WAY overpriced... now it has missed the spring and summer window here in Norcal... and has languished with MASSIVE price drops... It is a bit beat, which is odd for my market. They sodded the backyard.. and barked the front with some plantings... but left the tracked out carpet... and stuff and garbage on the property.

I am confident I can sell it for easy $100k over what it is listed for... in May... with just some flooring and general clean up...  But I would have to sit on it a bit longer than I would like.  Besides the interest and insurance cost to hold... what are my pitfalls? 

I would likely 20% down it with my heloc and conventional finance it...

Have any of you done this?  Thanks!

[Melissa Kirchhoff]

@Carson Wilcox - I would only say check your facts on sitting on it. I can't speak for there, but here, our market is super concentrated in the spring and summer, but in the winter we get our *serious* buyers (not those tire kickers who think it's fun to go out and look in nice weather). Now that may be because of the nature of our winters (I mean, whoever is agreeing to leave their house after a blizzard is legit looking for a house!) but from what I read for nation-wide real estate surveys, that's the case everywhere. They say the sold prices are closer to list in fall/winter and lots still sell then. There's less traffic, yes, but I think the traffic is more likely to offer than spring/summer.

Also, since *everyone* lists in that "peak" time, we get just an absurd surplus and lots slips past people or gets vetoed since there's 100 other properties that are the same. Whereas off peak times, you may have virtually no competition in your market. Now, I would still say be strategic anytime you list it, but I wouldn't personally write off listing in winter and fall. I think it's actually an excellent time to jump out in front of the pack!