Flipping for profit

[Sal Zafar]

Hello BP community - Need advice.  

I found this very nice house with metal roof just across the school next to score field. Great location! Planning to sell it for $150k, wanted to know if I add appliances, do paint and change the two shower tubs (need to change them). or sell it as-is? 

[Andrew Syrios]

If you want top dollar, you should do the upgrades in my opinion. It sounds like you just need a cosmetic repair, and in that case, I think most of the time it's worth doing the repairs before flipping it.

[Ed Emmons]

I agree with @andrew. Tubs are labor intensive to replace. If they are metal and sometimes plastic, you might check into resurfacing it. For metal there are a few 2 part epoxies that will make them look like new for under $50. I would look for discounted appliances, scratch and dent or good used ones that look newish. Usually women buy the house even if men spend the money. Women like kitchen, bath and closets so make them look good.

[Sal Zafar]

Thanks! make scene. in my current situation. My only concern is since i am already closing on another property next Friday. I personally think, i rather just sell it as-is and probably pass the discount to the buyer (investor) because it rent it out really fast as it in front of school. this way i can get my share of profit smaller but quicker and pass the spread to the buyer if they want to anything with it. 

[J Scott]

You said you're planning to sell it for $150K...does that sale price include doing the work you indicated or not?  Or are you just picking the $150K number out of thin air?

Of course, if you can sell the place for $150K either way (whether you do the extra work or not), then I would suggest not doing it.

But, if the sale prices will be different depending on what renovations you do (I expect they would), then you need to run the analysis of both situations and see which one works out best for you.

No offense, but based on your questions, I'm going to suggest that you do a good bit more research before jumping into a flip project...

[Sal Zafar]

Hi Scott - I've my profit spread within the $150k, I even go lower if I find cash buyer and close soon. so buyer will also have some spread in case want to flip it again or keep it as hold. it's a great income producing house just 35 miles outside the Austin, TX, just across the school. My thought process was, someone can get it with sweat equity. 

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