Buy And Hold Or Fix And Flip
To expand on the "moment money matters" about investors that buy/hold vs fix/flip, I felt I would go into depth on the topic. Determining an exit strategy prior to buying a property is essential. You don't want to wind up with what you think is a flip that ends up turning into a no cash flow rental. Identifying the property as a flip vs rental as an exit strategy is fairly easy. You have to remember that FHA is going to most likely be your end buyers lender so you want to make sure you appeal to that category of buyer. There are certainly other long term loans but for the sake of this article we will revolve around FHA. Most FHA loans are done in areas where people are buying to move into a property as a primary residence. You want to identify areas that have a large amount of owner occupants instead of non owner occupants. Locations with a high concentration of non owner occupants are usually rentals. In order to find this information out it can be done quite easily. Most counties have public tax records online that will show if the property is owned AND lived in by the current owner. Areas that have this would be considered owner occupant heavy. When there are concentrated pockets where the owners address is different from the subject property then that is most likely rentals. Use this information BEFORE buying a property to make sure the exit strategy is one that comes to fruition.
Ian Walsh
215.839.3271
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