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So I'm 19 y/o and looking into investing in real estate and I love the aspect of flipping and renting. I would ideally love to buy one of those houses for like 40k-60k on homepath in north Georgia and flip it myself. So I ran all the numbers from everything like the material cost to property tax and I'm getting a cash flow that is good, But I'm scared that I am forgetting something or not adding something and that the moment I buy into something it's going to go south. I'm just scared that Fannie Mae properties are too good to be true. Any advice/inspiration in flipping Fannie Mae Properties is appreciated. I will put a link to the screenshots of the numbers I ran below. P.S. I understand I will have to sacrifice a lot to get this done.
Well, for starters, you think you're buying something for $40K, putting 15K into it, and ending up with something worth $80K.
If that were true, the bank would do it. Everyone would be doing it. You're going to spend that much just on __________ (floors, walls, painting, roofing, fixtures, appliances). These homepath homes have been sitting vacant a long time. Houses deteriorate quickly without people in them. They just do. Many of them need to be gutted. At least the really cheap ones do. Their condition is the reason for the price.
Have you ever actually walked one of these properties? Do you have any idea how much construction repairs and finishes cost?
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