Now that the realestate market is turning to a buyers market what is the fear umongst yall as to holding time?Im thinking of doing a few rehabs but concerned Im going to be stuck with them for a year.
If you buy at a big discount, you should be able to sell very quickly. I’d recommend being at least 30% below market after all repairs are completed. Being able to do a quick rehab will be more important as prices decline.
If you buy at retail and prices decline, you could be holding for many years before prices recover.
Mike
property manager,
I noticed your 30% equity after all said and done and rents = 1/2 P&I and that seems like a good ratio to follow.You also are a holder like me although I think you own several hundred prop which I cant even fathom but If you do a rehab flip to sell quickly of course.You have to sacrafice some of the 30% sometimes right?
Buy $38,000
Fix $15,000
Hold $5000
$58,000
Sell $83,000 Right?
Profit = $25,000right?
If say you had NO interest in landlording you would have to drop your ratio to get the house off the books correct?
ps the whole laundryarcade idea fell through.we didnt get the building we wanted 8)We are rethinking your advice and going back to things we know ,rehabbing,however the flipping thing has not been real profitable for us but now we can use heloc money insetead of guidos 18% pay me 3 points now money.So I think we have a better shot at profit.