My husband and I buy to rent and have never flipped, but we would like to do a flip at some point. The major things holding us back is the shortage of skilled workers and contractors who finish their work on time reasonably, lack of inventory, our lack of experience and our busy lives with kids. We buy cash.
A few months ago we looked at a mid-century property to either buy-fix-rent or buy-fix-flip in a very desirable area in Denver (80220). The property needed a serious update, including 2 new bathrooms, fresh kitchen and taking down walls/opening up spaces, but was not in bad structural shape. It was listed at $499,000. Similar homes in great shape with contemporary finishes go for $750,000 around the corner. We figured we could get it for $450,000, but decided we could not pull off such a big fix with our lack of experience and our extemely busy lives, so we let it go. We would have paid and fixed up with cash.
It sold to an investor for $336,000. I'm shocked by the low sales price. It needs a lot of work, but nothing structural. It obviously shows our lack of experience in the art of negotiating. We assumed nobody would ever go that low and we never even tried. We could have rented it 'as is' for that price, and fixed it up when we were ready. Coulda, woulda, shoulda obviously.
How hard do you all negotiate?