Consider the flip or forget

[Alecia Loveless]

In one of the most desirable neighborhoods in my state sits a lovely Victorian mansion which was formerly a B&B. It is very dated inside with 40 year old wallpaper and stencils painted in many places on the walls. The furniture which will be conveyed with the property is a combination of extremely frou frou antiques in combination with a mix match of whatever was available to be found in local junk stores for a reasonable price when the sellers bought the place 40 years ago.

The market in this community is very hot with probably 200 $1-2M homes. At the moment there’s only 4 homes and 4 lots on the market there.

The sellers have paid someone a flat fee to list it on the MLS and are attempting to market it themselves which I believe may be part of the reason it has sat unsold for over a year.

If the price is negotiable and the agent that sold my 2 B&Bs thinks there’s a market to flip this do you think it would be worth about 8 months to update this and refurnish to try to get $150,000 profit?

PP around $550,000 ARV $750,000 less commission and fees

[Nathan Gesner]

Quote from @Alecia Loveless:

It's hard to give advice on this when we don't know your abilities or your market. 

Flips can be risky, particularly in a volatile market. The flip could take longer to turn around than anticipated or cost more money. And what if the market turns next year, and the property loses $50,000 in value?

Then again, it's been on the market for a year. Maybe you can pick it up for a reduced price and create a larger margin?

It's worth investigating, but I would definitely approach it with caution.