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Updated about 8 years ago on . Most recent reply

User Stats

69
Posts
52
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David Wolf
  • Investor
  • Winter Park, FL
52
Votes |
69
Posts

Have you ever been 1st flip in a neighborhood? Did you change you

David Wolf
  • Investor
  • Winter Park, FL
Posted

A dilemma I am hoping some experience flippers can chime in on. Please avoid commenting until we get some real experience responses. I need real scenarios and not opinions. We are putting a house under contract at a good price but their are absolutely no flips in the neighborhood. Purchase price is $88/sq ft and the house I'd dated but clean and well maintained.avg price in the neighborhood is $120/sq ft so it's a good buy that needs lipstick, but their has not been a single property updated in the neighborhood. For other flippers have you ever been the 1st to flip in a neighborhood? If so, did you keep the rehab budget really low, like just repainting the cabinets, or did you do a full renovation expecting to get a much higher price per foot that. The other properties not yet updated? We typically est. $25/sq ft for full cosmetic rehabs as a basic measure and If I could only get $125/sqft I would have to do more simple rehab like not gutting the kitchen to make this work if I cant get a record sale price per sq ft. I k ow to not try and out do a comp in a neighborhood that has already had a nicely updated sale, but what about a neighborhood where no nobody has tried. Your thoughts please. We have ran I to this several times now and have opted for more of a basic cleanup rather than full renovation model

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978
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985
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Aaron McGinnis#4 Contractors Contributor
  • Contractor
  • Atlanta, GA
985
Votes |
978
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Aaron McGinnis#4 Contractors Contributor
  • Contractor
  • Atlanta, GA
Replied

All of my truly profitable flips have been 'tip of the spear' projects in neighborhoods that didn't have great (or any) recent activity. My experience has been that once you show a market precedence, others will follow (and generally screw up equilibrium in short order)

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