Hubby and I discussed the course of the business a bit tonight. Some of his realtor friends want him to start negotiating with banks on their behalf, and he will get a portion of the profit from any sales that result. They also want him to do some property management (for rentals, and housing developments, etc.). He also wanted to discuss maybe bringing in a partner to help fund the next renovation (we have enough to fund about 2.5 projects, but not three full ones).
After much debate we figured out some of the financials. He will make about $15,000 from the first flipper, and he could make as much as $30,000 from the second. If we estimate conservatively, at $15,000 per property, and consider that we can comfortably do 2 properties per quarter. That is a profit of $120,000 per year (before income taxes, of course). This does not even count the income from the rentals. Very lucrative. Of course, we are dependent on the realtor getting the houses sold, but it is really in his best interest to move the properties (because we won't buy a third until one in sold). During the down times (which we might have in August) Hubby can work on the rentals, and also develop the estimating process, and start generating a list of interesting properties for the next round. Even if we miss our estimates in a particular quarter, we should still be just fine financially.
Decision: for right now, Hubby is going to stay focused on the flipping and rentals. It has only been two months. We can always re-evaluate after the first year.
In other news, we finally got the water turned on in flipper number two! Nothing much to discuss on the rentals right now.
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