We spent Saturday driving all over the area with our Realtor looking at potential properties for flipping. We came up with two possibilities. One is very near our house, which will be convenient. It is a complete gut job. People have broken in and stolen the copper pipes and everything. Weirdly the kitchen cabinets and the appliances actually look fine. The walls are a complete mess. We will need to insulate and drywall in some areas, paint everything. A bathroom reno would be a good idea, but it actually has 2 full baths and is 1800 square feet. In a very nice area. If Hubby gets it for cheap (he is thinking of bidding 50K, although it's listed for 77K), and can keep the renovations and other expenses (closing costs, utilities, taxes, etc.) under another 50K he might make a very nice profit on it. It is clearly the ugly duckling in it's neighborhood. The sale price of other houses on the same street run 130-140K, and it has a huge lot for this area (.5 acres).
The second possibility is pretty far away, but the property itself is in great shape. Needs some paint and carpet. Fixtures are a little dated, so we can easily change those out. Very nice back yard. Ok curb appeal, a few flowers would help a lot. The only problem is that there is a power station, with an ugly fence and several big ugly boxes directly across the street. Otherwise it seems like really really nice neighborhood. He is also looking at maybe getting this house for 50K (I think it's listed in the 60s). He can put 10-15K into it and sell it for somewhere in the 90s (hopefully).
One question we have is whether it makes sense to buy both. We need to develop a pipeline for this sort of thing, but don't really have the manpower to do two renovations at once. Maybe we can somehow offset the closing dates. Maybe we won't even get both. Both are bank owned and the bid/purchase process takes a long time in that situation (but you can usually get a much better price).
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