Short I list or should I even try and flip a pretty house?

Short I list or should I even try and flip a pretty house?

Wholesaler · Keansburg, NJ · Member since 2013 · 41 posts · 9 votes

I have been doing shortsale assignments as well as taking them down as  rehabs for a little while and I was wondering if anyone could answer my question. So I am getting alot of leads and alot of the are houses in good condition like ones that can get an fha mortgage or need very little in work. So my question is is it a waste of my time trying to come up with contractor estimates, appraisal reports and inspection reports for my offer if ultimately the banks are going to come back with a BPO that doesn't make sense to me to buy as an investor? I guess my logic is the BPO agent or appraiser is going to pull comps that are similiar to the house that I am trying to buy, if the house I am going to buy needs work and can't get a mortgage the comps the appraiser uses couldn't get a mortgage either and that means the buyer pool will be limited and will be investors and  will sell at a price I need it at, to flip because the comps will sell at a  low value. But if the house is in great condition the comps will come back with houses that where bought by mortgage buyers not investors (aka alot larger pool of buyers)  and will be to high to purchase as a flip because the comps will reflect a high value. I would love to hear anyone's thoughts on my logic and anyone experience with this situation, especially if people has success flipping pretty houses, or if they didn't and I should just not waste my time with those. thanks!

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  • Investor · Norfolk, VA · Member since 2016 · 28 posts · 10 votes
    9y

    If you are looking at a lot of houses, why would you waste your time and the contractors time getting bids for work? You should be able to use the 70% rule and estimate the repair cost to come up with your offers. You probably will come across both easy and hard rehabs and should pick the ones you are comfortable with doing. It wouldn't matter if its a "pretty house" or a ugly house if the numbers make sense. Also it seems like the leads you are getting are off the MLS and not off the market deals. Get on a few wholesalers buying lists so you can get leads that way as well. You still can find good deals on the MLS but off market deals have less competition (except from other investors). Then you have other questions to answer, will this be your first flip and how much profit are you looking to make on each deal?

  • Wholesaler · Keansburg, NJ · Member since 2013 · 41 posts · 9 votes
    9y

     Sorry Joseph but you completely misread my question. I am finding owners that are in lis pendens and negioiating with the bank threw a short sale I am getting contractor bids to submit to the bank.  I am not referring to random houses on the mls I am referring to Short Sales I am directly negiotiating.  So your answer isn't really reliavent to my questions.

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