Flipping in a hot market

[Kian Tajadod]

The housing market is and has been quite strong, making it tougher to find good deals. The way to get the best deal is definitely looking off market. Recently I was thinking if it would make sense to find listed properties that need less work (specifically in the kitchen/bathrooms) and not necessarily meant for investors. Aside from cosmetic work, most of the rehab money would go straight to the kitchen and bathroom since those can boost value. Could this work? Purchasing a property at around 6-10% discount and then adding most value to the kitchen/bath. I would assume that it could be very much up to the person doing the appraisal? What do you think? 

[Craig Jeppesen]

No it won’t work because it will cost you at least 10% in commissions and closing costs to resell. How will you recoup you kitchen and bath repairs and holdings costs. You would still have to get these properties at a discount but it would have to be more than 10%.