The cheese moved
Have you just worked out a great strategy, only to find the rules changed , or it no longer works? That happens often now with the current real estate market? For Example: You must hold a property that you buy for 30 days. New laws put a damper on your plans. It's not the end by a long means.
This strategy will not work for everyone,
It's great for those of you that get into fix and flip.
It is still working and will continue to work, as long as "Fix And Flip" is alive.
Have you ever noticed that a functionally obsolescent home remains on the market so much longer than normal homes do. A home fits the criteria of obsolescence when it doesn't have adequate bedrooms, or bathrooms, or a garage to make it fit today's standards. An example is a two bedroom home when demand calls for a three bedroom, or a one bathroom home when demand calls for a two bathroom home.
With this strategy, we are going to take advantage of the fantastic pricing in this functionally
obsolescent property . We are going to buy a two bedroom , one bath property, and bring it to it's highest and best use, by turning it into a three bedroom and two bath property. It will now sell for thousands of dollars more by fitting into today's standards.
Other examples of of converting a home to highest and best use
1. Find a multi unit on a large lot and add additional units. Be sure to check the zoning.
2. Finding a single family that zoned for multiunits and convert the home to units.
3. Take a one story and build up to increase square footage.
Look for this and other real estate investing strategies on my web.