Quicken Loans - The Easiest Way To Get A Home Loan

facebook Twitter RSS

Home > Real Estate Investment > The Best Markets to Flip A House

House Flipping Advice: The Best Markets to Flip A House

House flipping has become increasingly popular. It has become so popular in fact that several television shows have been dedicated to the subject. Many people who have no previous experience in house flipping have now jumped on the bandwagon and are now attempting to make big bucks flipping properties. If you are considering flipping a property, there are some key house flipping advices which you should first understand.

House flipping is the process in which an investor purchases a home, makes some fairly quick improvements to the property and then resells the same property at a higher price than what he or she originally paid for the property. The key to making flipping work for you, even if the market happens to be down at the time, is to make sure you are purchasing property in markets that are ripe for it.

Currently one of the best markets for flipping properties is Seattle. Seattle ranks as one of the biggest metros in the entire country. In addition, there remains a steady stream of people in this area looking to purchase property in the local area. The price appreciation in homes in this area has remained strong while a decrease in new home construction has resulted in higher prices for existing homes.

This is not always true in other areas. In Sacramento, for example, there has been a steady depreciation in price. Studies indicate that flipping is in such trouble in this area that there is a large number of investors who purchased property for the purpose of flipping less than two years ago and are now attempting to unload the properties for even less than what they originally paid for it.

Elsewhere in California; however, the house flipping market remains strong. This is the case in both Los Angeles and San Francisco. San Francisco can lay claim having the second fastest sales among many markets in the country along with good appreciation in prices.

Raleigh, Austin and Houston round out the top five markets in which to flip properties.

In many successful markets one of the keys to success is purchasing property from those who need to sell quickly. In fact, many real estate investors claim that they actually make their money when they buy their properties. If you can purchase a home at least 20% below market value then you are in a much better position to make some fast improvements to the property, re-list the home and still clear a profit within a relatively short period of time.

Regardless of which market in which you happen to purchase property to flip it is essential that you remain un-emotional about the process. It is critical that you keep the fact that this is a business uppermost in your mind. Never make the mistake of thinking that you simply 'must have' a property. If you cannot get the numbers to work, it is time to move on to another property. In far too many instances flippers make the mistake of becoming attached to a property and then find they need to either try to sell at a price higher than their market can handle or hold on to the property, thus reducing the profit margin.

Along these same lines, make sure that you do not introduce your personal taste and style into the homes you intend to flip. While the home should be attractive to buyers, it should not depict your own personal style. Make sure you stick to neutral colors in terms of carpeting and paint. Focus your attention of making bathrooms and kitchens shine. These two areas will bring you the greatest returns in terms of profit.

Remember that time is money when it comes to house flipping. Be sure to come up with a time line as soon as you have composed a list of renovations that need to be performed on the property and then make every effort to stick with it.

Take the time to hire a good contractor who can keep a close watch on the renovations and the time line in order to ensure that problems are addressed early.

Finally, always make sure you are prepared for the unexpected. Built some extra room into your budget for unexpected expenses as well as your timeline for problems which may pop up and require additional time to resolve.

While house flipping in some markets are certainly performing better than others, keeping these house flipping advices in mind will help you to perform better regardless of the market in which you happen to be flipping properties.



Buy House and Sell House Fast Back to Buy House and Sell House Fast

Home  ::  Home Buying  ::  Home Selling  ::  Home Mortgage  ::  Real Estate Investor  ::  Foreclosure  ::  Real Estate Service 

Bookmark Us  ::  Submit URL  ::  Resources  ::  Terms of Use  ::  Privacy Policy  ::  Site Map  ::  Contact Us 

Copyright © 2005 - 2018 All Rights Reserved.