Is this a very feasible prospect? We at Worldwide Realtors Company Limited have employed this strategy over the last four years with mixed results. The best bet is that upon refinancing we need to find another project to go directly into to continue to work the capital. If this is not done then the capital can become burdensome. These are some of the problems we encountered.
- New estimated market value did not exceed total expenditure by 25%
- Difficulty in leasing Jamaican property
- Reducing refinancing amounts as mortgage banks did not want to over leverage with one customer.
- Inflation in the economy pushed up cost of repair material faster than
real estate value appreciated. Jamaica
Though these problems might reduce overall profits in the short run, the strategy remains in tact and a very viable one to pursue. There are several communities that we believe have the best prospect for this, Meadowbrook, Hughenden, Constant Spring, Harbor View, Red Hills, Upper St. Andrew and some areas in Portmore St. Catherine. Due to the fact that real estate values for residential properties in these areas appreciate at a very steady pace these are the areas to hold on to. Other areas are more buy, repair and sell strategy perfect. The other flip strategy is actually the Buy Low Sell High Jamaica real estate flip strategy. We explore this in our next post.