There is plenty of quick cash in flipping houses.
No, not the physical kind of flipping where you turn an object upside down.
Flipping properties can be as profitable as any buy and sell venture. If you can still recall the very first item that you bought only to sell it at a much higher price, then that is, in essence the practice of flipping.
What is house flipping in the first place?
Well, there are certain properties that, for some reasons, are being sold at incredibly low prices. These are often foreclosed properties or even those whose owners are no longer around.
You can mostly find them in auction events. These properties will be bought at a significantly lower price then remodeled or renovated to improve its aesthetics and increase its overall value. When the time is right or when selling indicators are present, such as in the presence of an increased demand for value-laden homes, you can then sell the property at an insanely higher price for a profit.
Of course, it doesn’t always turn out this way or give you the profit that you expect, but it is, nonetheless a worthwhile business endeavor to explore and venture in. Sometimes, the total costs of purchasing the property plus the costs of repairs or renovations is a far cry from the price upon which potential buyers are willing to pay. For example, you bought the foreclosed property at 50,000 USD and spent another 25,000 USD for the repairs and all. That sets you back for about 75,000 USD not to mention your sweat, tears, and sleepless nights. You need to sell it for at least 80,000 USD but is it really worth it?
For some, it is. For others, it surely isn’t.
As in any investment, you will need to have your finances ready to back you in this endeavor.
There are however, some things that you can do in order to increase your chances of eking out considerable profit from house flipping.
• The location of the property you are going to flip is a major consideration. So, choose wisely and choose a location where people would really want to live. Look for locations that are accessible to many of today’s modern conveniences and amenities. While you may want to flip a house in the Rockies, your potential customers will be very limited. So think wisely.
• Always check the overall structural integrity of the property. This will give you an idea of how much you will be spending on repairs or renovations. If the cost of renovation will be almost equal to the purchase price, better look elsewhere.
• Buy a property that is located within a school district with a good reputation. Trends show that homes that are located in such areas sell a lot quicker than those in other areas.
• Get a feel for the value of the property you are eyeing. Remember that you need to buy something that is lower priced than what is the current rate in the property market.
One tip: buy a lousy house in a good neighborhood, and not the other way around. Because the value of properties in an excellent neighborhood are already at their prime, buying a derelict piece of real estate property and turning that into a gem can significantly increase your chances of earning that fat cash.
There are no blueprints to successful house-flipping. What is important is for you to understand the market and the behavior of today’s property buyers to help you decide the best approach to flipping properties.