This picture is me in a nutshell. Of course, it’s not me in the photo nor did I take it.
I do, however, spend endless hours on my iPad scrolling through real estate listings. Sadly, this hobby isn’t new to me. Long before the Internet made searching for a property so easy, I would scour the Home section of the local newspaper each Saturday morning.
The GOAL is always the same and it has never been about me finding my dream home. What I’m looking for is that diamond in the rough. You know, the cheapest house in the most expensive neighborhood. The one that has not been updated since the year it was built and with a little sweat equity (taking it back to studs and rebuilding it) we could easily DOUBLE our investment!
It’s pretty funny that I think I could make a profit flipping a house. While I have purchased an 800 sq ft condo in a new building, I have never owned a free-standing home and certainly not one in need of some love. So, ZERO understanding of the cost to remodel a home.
This does not deter me from looking or
Earlier this year I was so obsessed with one particular house that I would check the real estate listing daily to be sure it was still available. I even went as far as to create a new floor plan, indicating where walls needed to be taken down and new ones put up.
Unfortunately, I didn’t have enough funds available to make an all-cash offer on the house (of course it would be an all-cash offer, $200K under list price and close in 10 days…lol) so it has been SOLD! No updates on the renovations or resale price. But, I recently toured a home in the same community with the same floor plan as my obsession that had been updated (although, while it was nice, I had grander plans!) that listed and sold for a little over $2.2M. Which means I was RIGHT! With the right updates the house could have been sold for a profit. Although, perhaps, not double.
Clearly, there is a lot more to real estate as an investment strategy than finding the diamond in the rough but I still believe with the right plan and team in place there is money to be made. Time to find a job to fund my real (estate) passion!