Bought & updated 1st house flip.... now how do I sell it quickly?

[Jennifer Heeter]

Hello! My name is Jennifer Heeter I am 38, a single mom and a newbie to Biggerpockets-- this is also my first post. I'm from North Central Iowa and I just bought my first house EVER back in August. I live in the house and work a full time factory job. I decided to do some cosmetic updates to the house while I am in it (new flooring, paint, appliances, counter top then staged it with new furniture) all with the idea to flip it. I did most of the work myself so probably only put about $7,500 into it. I bought it for $95,000 with 5% down on a first time home buyers grant of $7,500 of which I will need to pay back at the time of sale. I spoke with a local realtor who did a walk through of the house before the updates were made and she said I did pretty good buying it at that price and that I should be able to sell it in the 120's after the updates. The market I'm in moves incredibly slow. I currently have it listed FSBO at $129,500 I listed it at the beginning of December and have had one showing this week, the potential buyer is a single mom with two boys, she really likes the house but feels it may be to small, which it is at only 1,000 sq ft 2 bd 1.5 bath however has potential for expansion in the basement. My goal for selling the house is to hopefully sell at $125,000 which would give me a profit of about $28,000 in which I would be able to pay of ALL of my debt and reinvest to do another house. I have posted it on local Facebook groups, craigslist as well as Zillow. Obviously I want to move this as fast as possible so my question is, are there any tips or suggestions you can give as to how I can do that? I am considering dropping the price or listing with a Realtor but concerned if I drop the price to soon then end up listing with a realtor later that I will be losing to much of my profit. Also, I haven't heard back yet from the potential buyer who walked through so was wondering if there is anything I could or should do to "help" her in the decision making process? We are in a town of only 1,500 people so it's a very personable friendly way of doing business type of feel. Thank you for taking the time to reply, any help is soooooo appreciated!!! I inserted a link for photos.... I hope it posted, can't tell ;-)

[Christopher Derr]

I know St Ansgar well, I am from Rudd and live in Garner now. 

My suggestion is you should wait until after next August.   If you live there for 2 years you dont pay capital gains tax. 

As you know with our -20 temps in the last week, not a lot of people are really looking hard. In the summer itll move better.  

Some people supplement their income very well by doing live in flips and live there for 2 yrs then sell. 

How does the grant work? Is it laddered? Where if you live there a yr you only have to pay 80% back?  I got a veterans grant and it was 5yrs rolling 20% off each year. 

If you used Iowa's program it has a 9yr recapture tax for profits but I dont know the details, I would ask your CPA.  Last thing you want to do is sell the house and not have the opportunity to take advantage of that again and also not make much profit after all the taxes.

Id definitely suggest you talk to a CPA to figure your "actual take home profits" on the sale at 125k.  

What are you going to do when you move? You'll probably need 10-20% down on your next home sinve you won'thave the grant. 

As far as helping her... show her all the grants and help available to her.  The things you used.  Another option is to offer the 3% buyers agent commision then other realtor will be apt to show it.  $3,750 is better than $7,500.

Good luck.