Hello all,
I have an interesting theory. I am very interested in flipping properties. I found a couple of houses that have sold here recently in the past. The current price of the house is however less than the previous sales price. Its on an appreciating rate which makes sense that it would be a good deal to flip or hold and resell. Is my theory right?? Also you would also consider the area of course and comparables.
Look forward to hearing some opinions!!
Thanks
It doesn’t make sense that “it’s on an appreciating rate” and now costs “less” than before…
That being said, one of the best things about “most” real estate is that it is forgiving, meaning if you want to buy it AND hold on to it long enough the price probably will increase.
I prefer “guaranteed” profits by purchasing way below the current market value.
Chris
If the seller needs the money fast for whatever reason, then why wouldn’t it make sense? Most all real estate properties increase over time. It’s just the matter of finding the right house for the money. For instance, I know of a house that sold 54,000 and some just in 2007. It sold recently for 11.5k. I believe someone got a deal.
Thanks for your input though.
Surfdude - By your reply I may have misunderstood your original question…the bottom line is that if you can buy far enough below market value to earn a profit then, yes, that is the name of the game…just buy low enough. IF you are willing to hold a property for a while (and you can define that) then you can pay a little bit more (if you need to).
If a house sold for $54k in 2007 and recently sold again for $11.5k, then on the surface it may appear that the person who paid $11.5k might have a deal…UNLESS it’s only worth $5k…
Use real numbers for real properties in your post(s) and I may be able to give you a better opinion…
Chris