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Updated over 10 years ago,

User Stats

99
Posts
46
Votes
Tyler Smiarowski
  • Accountant
  • cedar rapids, IA
46
Votes |
99
Posts

What's the best exit strategy on this flip?

Tyler Smiarowski
  • Accountant
  • cedar rapids, IA
Posted

Here are the stats:

2 bedroom 1 bath

906 sq feet

no garage, just shed.

roof, siding, furnace, a/c, water heater in good shape.

I can buy the house for 31.5k....ARV 60-65k...located in good lower income neighborhood. Needs $9500 in repair work.... I would be doing some of the work myself saving some costs.

Since it's a lower price home the profit margin isn't huge but it does meet the 70% rule. I was wondering if "rent to own" would be a better option for a home like this? I find rent to own very intriguing. Plan would be to list it for 60k...get a 5k or so down payment and have the buyer cash me out within two years. My total profit would be in the ball park of 18k.

I know this isn't a real detailed post but wanted to get people's opinion on my strategy. Thanks.