Flip without Improvements - Las Vegas

[Bruce L.]

Hey guys,

So, I'm currently under contract for a SFR here in the Las Vegas area. It's a 1200sqft single family home, 3bed, 2 bath, build in 1985 in a pretty nice area. The sellers was tried of being a landlord and didn't want to make any improvements on the property before selling so they listed at last sales price of $100k.

The house needs paint, flooring, granite counter top, appliance and some minor repair. It would cost me about $7K to make the place pretty nice.

The sale is a regular equity sale, not a REO or Short. I should be closing in a couple of weeks.

My question is, because of the extremely low inventory here in Las Vegas, I was thinking about just re-listing the property as is and sell it for $120K, which would be about $100sqft.

What do you guys think?
What would you guys do and why?

[Account Closed]

If you re-sell without the rehab, you likely be limited to investor buyers. Most retail buyers will have lenders that won't allow them to buy the property as-is and/or won't allow them to buy a property when the last re-sale was less than 90 days previous.

You don't say what the resale value would be when the rehab is finished so we can't compare it to a resale without a rehab. Square foot price isn't relevant without knowing all the comps and who is buying what (and where there money is coming from). What's the data on what investor buyers are buying in your area? If you don't know this info or how to find out, I suggest you hold off on your purchase and exit plan until you do.