Imagine you had enough money to buy a house - outright, no mortgage. You paid $150,000 for it; its 2 bedrooms, 1 bathroom, 1 kitchen, 1 living room, small yard, driveway, nice location, good neighborhood It needs either no repair work at all, or maybe just one type of repair work (like new flooring or maybe fitting a new bathroom etc. Your budget maximum for repairs is $40,000). You get that fixed, repaint the walls a good color theme, then go out to places like Pottery Barn/IKEA and buy nice furniture and décor. Spend some time on yard work - mow the lawn, clean the pathways, plant some flowers etc.
By the time you finished working on it, it’s a cute house; fully furnished and with no faults or problems. You then rent it out consistently for 3 years at $1200 per month, and then put it on the market to be sold at $200,000 ($15,000 more or $15,000 less, depending the current housing market figures at the time of sale).
Is that a viable idea? Like what are the things that could go wrong? Is there a good chance you make a profit if you ran with a specific plan/budget, or is it doomed from the beginning?
Added (1). Wow, thanks for answering =) I just finished working/interning a property job and yet you brought up points and ideas I didn’t even think of
Re: furniture â€" what if you bought simple neutral items, didn’t spend too much, and also gave the option of taking it out/partially taking it out? Also, what if the target market was young, like if the neighborhood was mainly inhabited by people under 35? My housemate and I fit that demographic and we rented furnished since we had no furniture of our own
Added (2). "When they finally leave they take the furniture and appliances and bust holes in the walls" -
Can’t background checks/character references take out that possibility? Like criminal record checks, proof of last address, letter from employer etc?
Read more: Would this idea work, or would it be destined to lose money?
