Live in flip, new construction

[Nick E.]

Hi, brand new here and had a couple of questions. I had this idea the other day and now I can't stop thinking about it. I currently own a home that I bought new construction. I have lived in it for about a year and a half and am currently finishing the basement. I owe $200,000 it's worth $230,000 and after the basement is done I should be able to sell for 260,000 or more. I know a lot of people in the trades and how to do some of my own work so I should be able to get my basement complete for less than $15000. Finishing the basement doubles the square footage and adds 2 bedrooms and a bathroom. The question I have is if it would be a viable strategy to sell my house, take the money and buy another that is similar new construction, finish the basement and keep repeating? I can't really find any holes in this plan, worst case scenario is I stay in a similar house with more equity. Am I missing something or would it be this easy? I would  buy and sell without a realtor. I have a mentor that has multiple rentals and he is willing to teach me. I would look into some rentals after doing this a couple of time and building equity. Thanks in advance for any advice. 

[Mike Romanowski]

I think Joe hit the nail on the head. My wife and I have been looking for distressed homes at reasonable prices in this market and not finding much. Market is so hot that even junk on the MLS is really high. Maybe it will be different next spring. My wife is a realtor so she gets wind of possible off market deals some times. Even unlisted, sellers are pretty aware of how hot the Sioux Falls market is and ask for premium prices. We did actually get one under contract just recently but it took quite a while to find and even then it will just be an okay good deal.