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Updated over 7 years ago,

User Stats

69
Posts
22
Votes
Teri B.
  • South Bend, IN
22
Votes |
69
Posts

What would you do? Flip or Keep?

Teri B.
  • South Bend, IN
Posted

Hello,

I know what the 'right thing' to do is, but I'm faltering.  Please put me back on the right track.

Just wrapping up my first flip.  I am all in a dither because I priced too low (lesson #1).  My broker has been elusive in the important ways.  I'm a new realtor.  I got the comps wrong on my own.  The first appraiser was giddy to tell me I was undervalued, and mentioned a house 3 miles away that wasn't as nice but sold for $10,000 more.  

 So, I'd guess I was probably $6-10k too low with neighborhood differences.  Had one another offer. They offered 7,000 more but wanted 4,000 in assistance.  My broker said they may be banking on it not appraising at offer price.  So, I went pending in a week (lesson #2).  

Contract expires Monday.  They can't close until at least Tuesday. I could technically get out of this.

If I kept if for a rental, it would be about a 2.25% deal.  No capex for a  long time.  We had people stopping bye basically begging to rent it. 

With that said, I will probably clear about $22,000 before taxes on this very first flip which is better than many end up on the fist go. We're relocating in the next year, so I don't really want to distance-landlord over an hour away. FHA with two appraisals . . . so even if I wanted to put back on MLS, I might be capped if they came down close to list price (lesson #3). No idea what appraisals were.

It's been a great learning experience.  But, there are so many moving parts in these deals and I underestimated the need to control them all closely.  I think I need to just walk with the money and get busy doing more deals.  But, I hate that I left money on the table.  Do you agree?

As always, appreciate the input.  I don't find lots of people who understand like BPers do.

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