Earlier this evening, I got a call from an investor client. Another agent had alerted him to a new listing that's "coming soon" and he asked me to run some comps to determine if it would be a good flip project.
This is a question I hear almost daily. Is this property a good deal?
It's not an easy question to answer as there are many variables to consider.
(1) Cost to purchase - not just the purchase price, but the taxes, insurance, loan costs and closing costs.
(2) Condition of the property & cost to bring it up to current market standards.
(3) Cost of maintaining the property while it's being remodeled including lawn care, utilities, insurance and interest on the loan.
(4) Cost to ready the home to market i.e. staging.
(5) Holding costs while property is on the market until closing.
(6) Closing Costs
If you are considering flipping houses in Wichita, do your homework. Setting a budget to include a purchase price, expenses and sale price is a good start. Have your agent run comps in the area both for purchasing and for selling. Knowing the average days on market and absorption rate for a repaired home can save you from a bad deal. Stay tuned for more information on Investing in Wichita.
Comments(0)