Fix & Flip or Two New Construction Homes
I purchased a property recently at an amazing price! I’ve flipped many homes but this is the first deal I could consider subdividing and building two specs. There’s profit in both and each have their pros and cons.
I originally bought to fix and flip. However I had several people approach me (RE investors in my click) telling me I should build 2 specs. It’s a really great area in my market.
If I do the fix and flip I’m all in $185k with a ARV of $290k. However I’ll have to disclose the remediated mold, foundation issues, and termites. It’s also half pier and beam, half slab. So lots of elevation changes in the home (ex walking up steps from livingroom to kitchen) which isn’t favorable in my market.
If I do the two specs I’m all in $500k with both specs selling around $620k (E/$310k). But holding cost are factors with demoing the old home and them being new builds. Plus the building process is uncharted territory for me, but I could figure it out considering the flips I’ve done were complete tear outs. I also get great experience being an owner-builder which imo is extremely valuable.