Quote: (08-16-2013 02:48 PM)DVY Wrote:
Buy and sell has implications because you pay comissions on both sides. Flips are rough if you don't have a steady construction crew that you work with.
Easiest and most predictable is probably buy and hold ASSUMING you have a good management company or live there. 10% COC is quite good. Issue is maintenance. If you hire a management company, you are going to get raped on repair charges. Its near impossible to verify if a) its an issue b) you are actually paying "low cost" for services and not getting raped by kickback comission shadiness c) management company isn't outright scamming you.
Good points. For me, the valuation of the property is critical in determining which course is best:
- If I buy and turn around and sell, the most I can realize in after commission/fees is $5K (this is pretax though). Which almost doesn't make it worth my time.
- Fix & Flip vs. Buy & Hold: This is where I want to know what the ARV of the property will be. I'll definitely need a crew to take care of the construction, however I do have a reliable (ex Marine) GC who get the job done, however I want to have a strategy in mind, before spending the $$s fixing it up.