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Updated about 4 years ago,
Liveable Condition Flip
Hello BP. I am a newbie investor interested to know if anyone has experience with safe, conservative "liveable condition" flips that do little more than get a house suitable for an occupant and able to pass inspection for a traditional loan. I mean less than $3k for minor repairs, maybe a little paint, and a top to bottom cleaning - and that's it. Since I'm in California and have no local investment options that I can remotely afford, I have no choice but to look out of state. Too early for me to do a BRRRR and I don't want to leave any cash in a deal right now. I realize long-distance traditional fix and flips are risky, especially for an inexperienced investor. With that said, I have seen some investors approach the deal as a wholesaler would, find a below-market deal or motivated seller to get the property under contract at a discount, and then just get a handyman in to get the property into "liveable condition", touch up paint, make sure everything is functional, do an intense cleaning, and then re-list the property for a small profit after closing costs etc, maybe using a flat rate listing service.
I have about $100k cash to invest, and so wouldn't need a lender for this type of deal but could use a bit of HM if the numbers make sense. Bottom line is making a huge profit is not important to me for my first deal, just doing a simple and conservative deal, learning a bit, and hopefully walking away with a few extra bucks would be my goal. No heavy duty rehab with a GC and all the risks that go with that, just a simple and very straightforward flip with minimal risk to get my feet wet.
Curious if anyone has any thoughts on this or experience they could share. Again, I'm not trying to get walk away with stacks of cash here, just learn and eek out what profit I can and get to know the business. Keeping lenders, property managers, and GCs out of the whole thing for my first deal seems like a great way to roll with training wheels on for the first ride.
Thanks to everyone for being awesome and so helpful.