aba1,You are posing an excellent question here, but I would need to know the specific properties you are referring to to help guide you to a prudent decision. Here's why I say this:Assuming the $500K house (Option A) is "turnkey" you WILL be paying a PREMIUM dollar for it today, faced with numerous buyers and multiple offers. If you are putting a substantial amount down, you will likely trump most, if not all, the other offers. Be aware that the property may not appraise, since the appraisal is based on historical data, and therefore, we WERE in a declining market, and the numbers are coming back lower than expected nowadays. We are currently in a HOT Sellers market here in Camarillo. Expect this wave or surgence in the market to continue at least through the end of November, when the $8K tax credit expires.In Option B, you say you will be putting $150K into the home after purchase. That is a huge remodel job, as I work with investors that can flip a home for under $40K in improvements. So, I will have to assume you will be buying a trashed house in a great neighborhood. That being the case, you would make your money back and then some, as long as the property was purchased well below market and the improvements you do are typical for the neighborhood. Just dumping cash into improvements will not garner a high return. You should consult with a local expert before leaping into this venture. I will be happy to help you Find a Camarillo Home that offers the best in location, features, AND price -- and therefore the most likely to appreciate over time.
Which option does yield the most of the profit?
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