Thread: Is it better to Invest in Cheaper properties?

Depends on what's moving in your market. Most times larger luxury homes don't move as well as bread and butter homes for Joe Homeowner. You really have to know your market, know how long certain properties stay on the market, and know what they sell for. As long as you are buying right and allotting plenty of cash for extended hold times if you were to do something that doesn't move fast you can still do it. It just means you need to buy that much cheaper. If a regular house normally sells in 2 months and a luxury home is more like 8 months you better make sure you have bought cheap enough to hold the extra 6 months to sell otherwise you are going to throw your entire spread out the window to mortgage payments, taxes, utilities, advertising costs, super high cost builder's risk insurance (necessary even when holding due to it being vacant), etc. Hell just an extra 6 months of insurance will run you another $1-3000.

Another factor is not finding many trashed McMansions. Generally you are also not going to find as many rich people that are trapped and need to sell fast, they generally have high paying jobs, savings, available credit, etc to weather the storm.

If you haven't done anything yet start small, when you master that and have built up a good pile of cash start upgrading your projects if you feel the need. If you want to make more money (hey, who doesn't?) become a machine and start cranking out those middleclass rehabs. The people that are making good money rehabbing run multiple rehabs at one time and can finish one in 30 days (even full gut). There's no reason you can't run 5+ projects at one time and finish them in 30 days if you have a few good contractors and good subs. If you do 5 a month you will be doing 60 per year. If you're making $20k net each that's $1.2 million a year......why bother with the mansions that are hard to sell?

I think the attraction to do a high-end home is that it seems to pay you alot in one transaction. But as Rich mentioned, if you do a number of smaller transactions, you can make just as much if not more over time. Also, you don't have all your risk in one property.

I guess it would be nice to do a project where you could actually splurge a little: granite counter tops, crown molding, nice cabinets, etc rather than the every day white cabinets, white walls, formica counter tops... you get the picture.

Originally Posted by InRealEstateSolutions.com

I guess it would be nice to do a project where you could actually splurge a little: granite counter tops, crown molding, nice cabinets, etc rather than the every day white cabinets, white walls, formica counter tops... you get the picture.

Definitely a fun project to do when you also have other small projects to hedge your bets against.

Yes.. Again, fine the cheapest property in a good area.. Fix it up, rent it, then sell it...

Originally Posted by CreditCardRadio.com

When buying and flipping properties is it better to go with really inexpensive homes or bigger ones?

Steve

A Land Trust is an agreement between a Trustee and a Beneficiary where the Trustee holds title to the property and the Beneficiary holds all beneficial interest inthe property.

SEO Manchester

I would suggest you go on cheaper properties like a unit. It is more easily to rent and sell than houses.