How Do You Feel About House Flipping?

Discussion in Mortgage & House Payments started by novasparker • Aug 24, 2012.

  1. novasparker

    novasparkerActive Member

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    Years ago there was a show on TLC about house flipping. If you don't know what house flipping is it's basically when someone purchases a house, fixes it up and sells it for profit. I've seen great flips. The profits were always good on these shows...the flippers always came out on top. But does this still work in today's housing market? Can you sell a house fast enough to make a profit or will you be stuck with carrying it for a year or more and lose your investment? What is your opinion on house-flipping? Yay or nay?
     
  2. Jessi

    Jessi<a href="http://www.quirkycookery.com">QuirkyCooke

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    I think it's far too risky. If you can afford to risk losing that money, then okay, go for it. I don't think it's something most people should do right now, though. The economy is too unstable and people aren't really looking to buy for very high prices. Most are trying to get out from underneath their current house instead.
     
  3. Parker

    ParkerWell-Known Member

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    There are a lot of great bargains available in the real estate market for those who have money. If I had money I would definitely be buying foreclosures. Even if I couldn't sell them right away, I would rent them. People will always need a place to live.
     
  4. ACSAPA

    ACSAPAWell-Known Member

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    Agreed. If I had money, I would be picking up some rental properties so I could have an ongoing income, not a one time house sale. There will always be college students moving away from home that need an apartment, so every year you have a new crop of customers.
     
  5. Jennifer

    JenniferActive Member

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    We know two or three people that make a living of buying and renovating houses with the intent of re- selling it and making a small profit. I agree, you do need to have money that you can fall back on if the house does not sell quick enough. Some of our friends have landed in hot water trying to make a living out of this type of business, whereas others again have done quite well. Personally my nerves wouldn't be able to take the stress, especially in these difficult economical times we living in.
     
  6. Livvi

    LivviActive Member

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    I have a family member who did this, she fancied herself as a bit of a property tycoon and took on far more than she knew how to deal with. She bought the house for a really good price just before the economy hit the floor and now nobody has the money to buy. So she is out of money (I think about fifteen grand) for the renovations and she is also stuck paying her own mortgage and a second one too. I keep telling her to rent but she thinks there is a buyer right around the corner any day now. By the time it does sell, the profit, time put in and effort will mean it hasn't really been worthwhile for her.
     
  7. j_pin

    j_pinActive Member

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    It is MUCH harder to flip houses in the current market than it was in the best decade or so. It's definitely a buyer's market not and not a seller's. It also takes a while to move a house these days. Seasoned Pro's are still making some money but it's nowhere near what it used to be.
     
  8. sdjaxson

    sdjaxsonActive Member

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    Totally depends on the area. My Pop House Flips and loves doing it.
     
  9. biddyb

    biddybNew Member

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    You can still sell a house fast enough and make a profit. The guideline is that you cannot buy a house for $100,000, invest $10,000 in it and turn around and sell it for $200,000 in a couple of months. That was the old flipping that got a lot of buyers in trouble. However, you can purchase foreclosures and short sales a little cheaper, put some money into it and bring it up to neighborhood comparable values and still sell for some profit. Also you must hold title for at least 3 months before you turn around and sell the home.
     
  10. Pat

    PatWell-Known Member

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    Things have changed in the business of flipping houses. It is not the quick money it use to be. I would invest with a mentor to guide me along the way. I would prefer to invest in the mortgage, no property to take care of just the mortgage.
     
  11. Farrah

    FarrahActive Member

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    I think house flipping is a lot harder than people realize. It is a huge project, that has to be done the right way. Unless you are planning to do the work yourself its really hard. Especially if you are under time restraints, like selling it before the first mortgage payment. Contractors can be unpredictable, especially after they get that check in their hot little hands.
     
  12. alc89

    alc89Active Member

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    I agree. I think this idea would work best if you had more than enough money to invest in homes. Like others mentioned on this post, house flipping is NOT easy. It is hard work and expensive, whether you do it yourself or you hire people. I think your money would be better spent by fixing up the houses and putting them up for rent (not for sale). Even if you have to pay a mortgage or be responsible for the upkeep of the home, you would have residents and leasers who would probably take care of much of the burden. If you are successful at this, I can see this type of lifestyle with great passive income to be beneficial in the future.
     
  13. green_momma2007

    green_momma2007New Member

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    It sounds like a good thing for people that have a lot of money to spare and that like renovating. I doubt that it is feasible or even recommended for your average Joe. The issue I have with it is (and with real estate investment in general) is that it hikes up the prices of houses and makes it harder for people to buy houses. I know there was a time in South Florida were people went crazy investing in houses, and it was really hard for someone who just wanted a house to actually live in.
     
  14. AlexMcLeod01

    AlexMcLeod01New Member

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    Unless you can buy significantly below market value, it is not really worth it to flip in today's market. If you can buy way below market, you can flip fairly easily by selling for only slightly below market. That is something you can't do if you buy at market value or even slightly below.
     
  15. gabstaff

    gabstaffMember

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    If I had the money then I think I wouldn't mind flipping house. I watch HGTV all the time and I love going into a home and imagine what all could the house could become! I get goosebumps just thinking about it! :)
     
  16. classicnyer

    classicnyerActive Member

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    I have a friend who did this, except he runs his property like a hotel and rents it out to tourists who pay by the night rather than by the month. He's making crazy money that way.
     
  17. trishgl

    trishglActive Member

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    I'm not sure if it's a viable business in the economy we are in. It's also not as easy as one usually sees on these reality shows. You really have to have extensive experience when it comes how a house is put together, repairs, property values, mortgages and a hundred other details they don't explain in those house flipping shows. Anyone of those details can set you back thousands of dollars which can run your business to the ground.
     
  18. sue321

    sue321New Member

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    My friend's grandmother did this for most of her life and did well out of it. She had the knack of knowing just what to do to improve a property to sell it on for a profit.
    Anyone who lacks this ability could waste money on renovations that dont raise the overall value of the home and end up out of pocket.
     
  19. LindaKay

    LindaKayActive Member

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    I think it can be very smart if you are able to do a lot of your own repairs. Otherwise, it will cost a lot more than it's worth. But if you are good at what you do -- and hopefully if you can get a good hookup on building materials and supplies -- you can make a lot of money.
     
  20. cberry

    cberryNew Member

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    Flipping is back, right? As investors were able to grab a lot of properties for dirt affordable and now are beginning to see a bit of a payoff. Flipping as a strategy involves buying a piece of real estate and then

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    it at a reasonable profit. You can buy and simply ride appreciation upward or buy depressed properties fix up and sell. In either case a good bit of care is normally exercised to avoid and or minimize taxes.
     
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