Wednesday, February 3, 2016

Comparisons: To keep? To rent? To flip?

So, now that you've seen what we're dealing with (as walked through in a post found here), I wanted to let you in on what Chris and I are exactly thinking about this property.

Originally, we were going to find a place (done), fix it up (in the process of), live in it while the house is being redone, then sell it after for a profit.

However, upon finding our little blue-shag-carpeted beauty, I googled the address and found another property also for sale.

Same complex.
Same floor plan.
DIRECTLY next door (we even share a wall).
And was pending for $160k... $55,000 MORE than what we are paying!

I snagged the pictures offline to show you guys a little example of how beautiful our unit can truly be if it turns out ANYTHING like this one:
They did hardwoods throughout... so pretty.


Opened up the kitchen and extended the island into the dining.  Honestly, for the size of these condos (both 1,033sq ft), this is actually a genius idea.  Less furniture, a good place to mingle and eat near the kitchen without being IN the kitchen, and opening the wall gives it even more space.  Well done.

Beautifully redone kitchen and I love their granite choice.

Nice back patio, free of clutter.

View from the kitchen:

Again, that granite! Wow! Am I right?!

Living room:
Bedroom #1:


Bathroom #1:

They just put new granite on the boxes with new hardware and had the flooring run throughout.  I don't know if you really want hardwood in your bathroom though... at least thats what it looks like (personal side note: become friends with neighbor and ask to poke around her property).

Updated shower in Bath #1:

Master:

LOVE. THIS.
The room is a weird shape (I think Chris and I measured it at 18" long by 11" wide but this is a great use of space.

Master bath:

They removed the door leading into the bathroom.  We're probably not going to follow suit on this only because the bathroom area already is open to the master and there NEEDS to be privacy somewhere.  I have never woken up in the morning longing to see Chris sitting on the toilet while I'm in bed. NEVER.  Doors people. Keep the mystery alive.

And the same awesome storage closets:

So yea... with this selling for $55,000 over what we are paying, Chris and I ran through some options in our head.

1.  Keep the course. Fix it up, stay in it, and then make a nice little profit when we sell.
2. Keep this as a rental.  Its in a great little area of Dallas and really close to shopping with easy access to the freeway.  We could have someone else pay the mortgage AND make about $500-$600 extra a month!
3. Flip it and get it back on the market in a few short months.

After much consideration, we have decided on....
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(cut to commercial)
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(I'm watching too much HGTV)
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We have decided on OPTION #3!!! We're going to flip it!!

We made this choice for a couple of reasons (Im really into making lists today if you haven't been able to notice):

1. The Dallas market is HOT and this area is even hotter.  Might as well capitalize!
2. We loved the idea of renting it out until we needed it, but a down payment on $105,000, not including closing costs, is $21,000... add in expenses to remodel and that is A LOT of money out of pocket that would take a few years to recoup back in rent.  Im a numbers person and rather have money in savings.
3.  Once we sell, we can put our money back in savings (yay), and use the profit to get another property and go from there. (Yes, we are well aware of capital gains tax and will cross that bridge when we get to it.)

We also figured this would be an excellent property to start with since we KNOW what others are selling for in the area and it would give us a chance to get our feet wet without getting in over our heads.   We also want to make sure Chris and I get through it too with our marriage still in tact lol.

ANYWAY, have any of you guys ever had any experience flipping a property?  Any advice?  Is our neighbor's condo not so stinkin' cute?

See ya on Friday!

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