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Updated almost 2 years ago,
Failed Fix and Flip Exit strayegy
Hello all,
I am doing my first rehab flip. It has turned out to be damm adventureous/scary/ Stressfull/ Sleepless journey. I have my great share of mistakes, and if I survive this , will do it lot better next time. There are these continous moments where I absolutely think I should have not got into bussiness at this time.
I had the worst contractor whom I trusted till very late in the project who did all jobs very lousyly. The paint job, tile Job and flooring done by him is very bad and pathetic. I will put in a detailed post of How I got here, the story is stupid and miserable for me.
so I have listed the house for 343k in concord -28027 zipcode, the house had very good interest and views on zillow and redfin, but none of these has converted into a offer. I had two semi offer, I think they were the undecided buyers. I had many people tell me how lousy the paint and tile job is. I can see it, nobody need to tell me that and that is the reason why any of these leads are not converting to a offer
As I stand today, I will lose 15k to 20k [without counting my travel and food expense] on this property at the above ask price. And my loss is increasing every day I hold it. I live about 1 hour 30 min from the property. One round trip costs around 25 bucks with the vehicle I own.
I have a hard money on this house costing 2200 every month + 2380 every three months in renewal costs. This is the highest cost line item in my flip.
With credit market in big risk and high costs of capital, I am super stressed/ sleepless /not mention scared and worried how to go about with this now. In short I am worried about my exit.
So now I am trying to figure out how do I go about this home now.
1.refianance and hold l. I will lose about 200 or 300 every month. I should be able to rent at 2000. I am looking for a good lender who can help me. Good thing is I have good credit and equity on this project.
2. Suck up and Fix up the issues and sell. It does not mean I will still get the asking. This will cost me another 10k in labour and material. Bigger problem is if I need to mess around with the floor, they are discontinued in lowes.
3. Reduce price, if yes by how much. Will I still have buyers.
Any advise is greatly appreciated.
Thanks
Anil