Hi, I bought my first flip property last year in
Ohio, I live in PA. Thought it was a good investment now I’m thinking I put to much into it after getting ripped off be a couple of contractors which shorted me money with things that need to be done yet. Like a new roof and carpet yet. Then the house would be rentable. I wanted to just fix it and sell it, but the market in the area is very low and I have to much invested to take such a loss. Find a way to make these improvements and do a rent to own lease?? Hoping the market will improve and I can recoop what I put into it. Sell it at a loss? I have a 25000 mortgage on it now. Appraisal the way it is 50000. Everything new inside. Any help would be greatly appreciated. thanks
Is the roof in such bad shape that you can’t rent it out, meaning it leaks or something? Otherwise, put the carpet on a Home Depot card and get some renters in there!
Are you into the property for anything beside the $25K mortgage?
Could you rent the property out to someone (a handyman) for reduced rent for a couple months and have them finish the needed work on the house?
Hi.
I have plastic down in the attic right now. There is 2 spots that I know of where it comes in. Not terrible now, not sure how long it will take before it gets worse. Thinking about advertising rent-to-own. Just worry about getting the right people in there, Put alot of time and work in the property. I know it is costing me alot to just have it sit too.
Thanks
What I would do if I were in your condition is go back to basics. In flipping the main goal is to sell at a profit AS SOON AS POSSIBLE. You can get $50k for the house, if you wait for someone to come along to pay that. You would make $25k. You need to get as much as you can get in the shortest amount of time. If you can sell it for $30k and make $5k and only hold it for a couple of weeks is better than selling it for $50k and it takes you a year to sell. I say that because while a house sits empty things disapear from it, holding costs eat at the profit, real estate agents dream up stories about why it won’t sell, etc.
You still have good equity in the house so spend that equity to minimize the amount of time the house is on the market.
Necessity being the Mother of Invention, I have had good luck having a professional roofer just patch the leaking roof with some color-matched shingles.
No more leaks! And it looks okay. Most of those jobs just cost $75-$200 for labor and materials. There would have to be major roof failure before I would replace a roof. Since I tend to hang on to houses, not flip them. And renters don’t care about the roof as long as they stay dry.
Furnishedowner