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06-11-2007, 10:50 AM #1
Renter
- Join Date
- Apr 2007
- Posts
- 4
Building on empty lot vs. fixer upper for flip
Hi,
I would like to know as a 1st time investor, what would be better (more profit) buying an empty lot and building on it or buying a fixer and turning it over. I don't have any experience in this. Any suggestions from the wise??
Thanks,
sweetboy
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06-11-2007, 12:55 PM #2
Condominium
- Join Date
- Mar 2007
- Posts
- 199
That is a loaded question. It depends what area you are in, how much captital you can put out, condition of the fixer-upper, etc. Some lots will simply never be worth what you put on them, and with others you can turn a reasonable profit. (same is true of fixer-uppers).
Team up with a realtor and they can help you find a property that can be turned for a profit. Have them to a before and after market analysis so you'll have an idea of what to expect in the market where the property is. Then sit down and run the numbers. Don't forget it will likely take longer to build than fix up, and different loans would apply to each, which can affect interest rates, amount of up front money you'll need, etc.
Also consider what work you can do yourself, and what you'll have to hire out. And in either case, talk to the local realtor about what features will make the home stand out and sell quickly and at the best price.
-Tim
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