To Flip Or Not To Flip?

[bubbatime]

We bought a brand new town house in the suburbs of Orlando in 2009 for $106K. We sold it today for $148K. Realtor thought if we held out we might have got $152k-154k, but we wanted it sold as we are building a new house and need the money for that. It was not on the market for more than a month. Had several offers too. The housing market seems pretty hot right now.

My current house I live in (SW FL) was bought in 2013 for $200K. Realtor thinks we will get $350K for it when we sell it next year. Almost doubling my money in 5 years.

I think we are approaching another housing bubble. Maybe.

 

[CKN]

I bought a three bedroom Condo for my son and his family to live in. I had to get them out of my basement. I paid $156,000.00 5 years ago. It's now worth $220,000.00

It's all supply and demand.

They will be starting teaching jobs soon and I will sell the condo-split the proceeds (once I get the down payment out) with them so they can buy their own place.

Any piece of real estate I have ever bought turns in to dollars.

 

[oilpsi2high]

Originally Posted By: AirgunSavant
Anybody holding a property looking for a better payout?
It is a gamble.
This area was not hit so hard the last 10 years but still "hit"
House Inventory is down but the prices are still a bit soft.

I have a house I want to sell. Sits vacant. All redone.
Prices are okay but not where they should be presently because its price range is higher than
the local "sweet spot"

I figure it will cost me $9- $10K to keep it another 10-12 months.
That's electric, heating fuel, taxes, and insurance only.
I do the outside upkeep and I have no bank note on it.

Anybody else holding out?
The sale will fund my own house I'm going to build when this goes.
I'm going minimalist after this. Tired of the hassles....


Sell it now. The housing market is at its peak IMO and with all of these North Korea tensions in addition to Trump and all of his erratic decision making it is pretty apparent that a recession lies ahead.

 

[oilpsi2high]

Originally Posted By: CKN
I bought a three bedroom Condo for my son and his family to live in. I had to get them out of my basement. I paid $156,000.00 5 years ago. It's now worth $220,000.00

It's all supply and demand.

They will be starting teaching jobs soon and I will sell the condo-split the proceeds (once I get the down payment out) with them so they can buy their own place.

Any piece of real estate I have ever bought turns in to dollars.


Honestly, you're leaving out an insane amount of expenses. This is what is so annoying about real estate and what got this country into a mess to begin with. People looking at the purchase price, and then the perceived gain when the market shifts in a certain direction.

You paid 156k, then how much in property taxes, interest, real estate fees, maintenance, lawn mowing, utilities? You're probably at the break even point.

When you sell, unless you're a real estate agent and lawyer you're going to get lit up again with fees and more expenses. Also, since that three bedroom condo isn't your primary residence, you're going to have capital gains tax on any earnings as well.

 

[CKN]

Originally Posted By: oilpsi2high
Originally Posted By: CKN
I bought a three bedroom Condo for my son and his family to live in. I had to get them out of my basement. I paid $156,000.00 5 years ago. It's now worth $220,000.00

It's all supply and demand.

They will be starting teaching jobs soon and I will sell the condo-split the proceeds (once I get the down payment out) with them so they can buy their own place.

Any piece of real estate I have ever bought turns in to dollars.


Honestly, you're leaving out an insane amount of expenses. This is what is so annoying about real estate and what got this country into a mess to begin with. People looking at the purchase price, and then the perceived gain when the market shifts in a certain direction.

You paid 156k, then how much in property taxes, interest, real estate fees, maintenance, lawn mowing, utilities? You're probably at the break even point.

When you sell, unless you're a real estate agent and lawyer you're going to get lit up again with fees and more expenses. Also, since that three bedroom condo isn't your primary residence, you're going to have capital gains tax on any earnings as well.


I own several pieces of real estate.Because of these investments I retired at 55 years. I am well aware of the expenses involved. The depreciation you get via income tax offsets many expenses.

 

[oilpsi2high]

Originally Posted By: CKN
Originally Posted By: oilpsi2high
Originally Posted By: CKN
I bought a three bedroom Condo for my son and his family to live in. I had to get them out of my basement. I paid $156,000.00 5 years ago. It's now worth $220,000.00

It's all supply and demand.

They will be starting teaching jobs soon and I will sell the condo-split the proceeds (once I get the down payment out) with them so they can buy their own place.

Any piece of real estate I have ever bought turns in to dollars.


Honestly, you're leaving out an insane amount of expenses. This is what is so annoying about real estate and what got this country into a mess to begin with. People looking at the purchase price, and then the perceived gain when the market shifts in a certain direction.

You paid 156k, then how much in property taxes, interest, real estate fees, maintenance, lawn mowing, utilities? You're probably at the break even point.

When you sell, unless you're a real estate agent and lawyer you're going to get lit up again with fees and more expenses. Also, since that three bedroom condo isn't your primary residence, you're going to have capital gains tax on any earnings as well.


The depreciation you get via income tax offsets my expenses.


lmao

 

[PandaBear]

The current market seems maxed out at the current interest rate and job market. If the interest rate doesn't go up and job market gets better, it may go up even more.

One thing to remember however, is that USD has depreciated (vs gold) during this time. The same $1 USD at 2001, 2008, 2017 are very different.

 

[SeaJay]

The market is never where sellers want it to be.