How do you decide to flip or sale house

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Inherited 1949 2 bedrooms 1 bath kitchen and living room. Back porch was built in with small beauty shop and now has washer dryer and only the one wash hair bowl left there. 784 sq feet. Small lot. Houses in area this size sell for 80,000 to 90,000. Never flipped before. Have no idea how to do this or no idea how to sell a house that needs flipping. Have a renter that says house needs plumbing and other work done to safety rent.
q how do you decide to flip or sale house
  9 answers
  • Cynthia H Cynthia H on Aug 07, 2017
    If you are unsure of the scope of work needed, and are thinking of selling, I would pay for a home inspector to come in. That way you can update what needs to be done (and document it). Do you have the skills yourself, or will you need to hire them out? For example, I won't do plumbing or electrical, but, am very comfortable installing sheetrock, insulating, painting. I've also helped install siding, roofing, etc. But, there are projects I would no longer feel comfortable doing myself. The actual cost of upgrades, including labor will help you decide. Also, when looking at comparable properties, are they upgraded? Go to a few open houses and see what's selling (and not selling). People get in over their heads all to often. I love watching shows on TV about flipping on the DIY network and HGTV, but, a couple of episodes of First Time Flippers can be very sobering. Sure some get it right, but, some lose money. You want to appeal to the homebuyers in your area - or renters if you go that route. Also, the old hair salon - is it zoned? I had the zoning changed on my house for a home business years ago (I had to present to the zoning board for approval) and there was some expense involved. Not everyone follows the rules and if it isn't zoned, you won't be able to use that as a selling point. It looks and sounds like a fun project, but, keep your feet on the ground. Older homes have many problems from roofing, heating, plumbing, electrical, lead paint, asbestos - you name it and it may have to be dealt with.
  • Rose Broadway Rose Broadway on Aug 07, 2017
    Since we never know what the market is going to do (the experts are expecting the housing bubble to burst soon), you may not realize all the work that goes into flipping and because it's a sellers' market right now, I would sell it "AS IS." Put a fair price on it and don't vary from that price much. Good luck.
  • Txlakegirl22 Txlakegirl22 on Aug 07, 2017
    The advice above is good. I just wanted to add that if you get a home inspection and decide to sell, it is a useful tool. We did that with my mom's house. We didn't know what they had done in terms of repairs or when things such as HVAC had been replaced. We got the inspection and fixed what we needed to for selling and were able to show potential buyers the report and what had been addressed.
  • How much do you want to work? Flipping is nothing like what is depicted on tv. It is filthy and messy, but the rewards are worth it if you are willing to accept the challenge. Do you need the rental income? Add to your nest egg, get kids through college, take a vacation of a lifetime? Then I would invest money into the property to obtain the highest rent possible and grow your empire, BUT have a separate account for the house along with a healthy slush fund for maintenance, repairs, insurance and taxes. Or dump some money in it to obtain the highest sale price possible. Then take that money and invest wisely - talk to your financial planner and attorney to see what is best for you and your family. It is a highly personal decision -your gut will tell you what to do.
  • Fiddledd224 Fiddledd224 on Aug 07, 2017
    I would get a real estate market appraisal and see what you can get for it "as is". If investing time and money will reap rewards, consider making the improvements. If not, just sell it and walk away.
    • B. Enne B. Enne on Aug 07, 2017
      Due to price spikes and a bidding war, my neighbour sold his house for $140K more than it was assessed. He had planned on doing lots of repairs. An agent came in told him to declutter, depersonalize, stage (they did it themselves), and fix a few items. It is a good thing he didn't invest more money, because he could not have sold it for any more.
  • William William on Aug 07, 2017
    All great advice! You may also contact a real estate agent to give you a market analysis "as is" and with any repairs you decide to do if you have the home inspected. A good real estate can also advise you on what buyers are looking for. This way you can decide what you want to do.
  • Ken Ken on Aug 07, 2017
    Just one thing to add. Realtors in your area will be able to provide sound advice so that you can decide whether it is worth making any upgrades or repairs before you sell it, which is what I think you mean when you mention flipping.
  • C. D. Scallan C. D. Scallan on Aug 07, 2017
    Just a thought to add as well... ever heard of Air BNB? You can fix it up and register it there if you are near any major cities, university or tourist attractions and rent it by the night , week or however long people need it. We recently used it for the first time and had a great experience . For a family, it's more economical to rent a house for a week that has a full kitchen and washer/dryer combo than a hotel room .
  • Linda Linda on Aug 07, 2017
    Good advice, all....I would add that you may find that a two bedroom is not as in demand as a three bedroom....so that might enter into your decision. Also, if you do decide to sell...."as is" you may still want to have a home stager come in and stage the place. Also, I've heard somewhere, that a house with furniture in it sells faster because people can easily see how each room can be put to good use. :)
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