Exit strategies for your flips

[Danny Day]

I'm working on my business plan, and currently working on my exit strategy part of the plan.

Ideally the exit strategy would be to sell of the house and make a nice profit.

Would a contingency to not moving a home in, 4-5 months possibly be

1. Rent the house for 12 months
2. Rent the house and market as investment property
3. Lease with purchase agreement

Any other thoughts or ideas?

Thanks

Danny

[Will Barnard]

Many posters have suggested and offered advice on refi loans as an alternative exit.
The name of this thread was and still is "Exit Strategies for your Flips" and to be a flip, you must sell, not hold.
Therefore, in my opinion, all of that advice is inaccurate and the only one I saw who mentioned a valid answer to this thread was Vikram.

Here are my exit strategies for all of my flips:
1. Evaluate a reasonable and expected exit price (don't pick the best case scenrio, particularly in the current market conditions.
2. Properly evaluate your rehab expenses and stay inside budget
3. If the home does not sell inside the first 30 days of list date, drop the price. This is the only option I consider as an "alternative" exit.
The key is to only lock deals where yu have enough room and bought in the right area/location to "firesale" the property and walk away with no profit, then learn from the mistake you made on that deal.

In summary, as a flipper, NEVER use a buy and hold as a potential exit. Simply cut your profit (or even eliminate it) to dump the asset and start over again.