Buying a Property to Flip It

Flipping property has been going on for decades. There are two main avenues for flipping property. The first involves finding a house, purchasing it, and then, fixing it up in order to sell it for a higher price. The other form of flipping involves buying up real estate when the market is low and holding onto the house until the market improves. While waiting for the market to go up, people often lease their houses to retain a steady flow of cash to cover any mortgage or home equity payments.

Locating a Property You Can Profitably Flip

One important concept to understand quite clearly when considering a home to flip is that location is everything. A home can only be flipped successfully if you purchase a property in a area where homes are in high demand and sell quickly. You will have to invest time in understanding your own local area, or the location in which you are thinking about purchasing your flip. If the property you are considering has homes that have not sold for a long period of time, avoid that home. It is a general principal in real estate that the longer a home is on the market, the lower the offers that will be received.

Another option to finding lower priced homes is to look for homes that are being foreclosed on by the bank. Since foreclosed homes may need repairs or upgrades, have a home inspector carefully look at the property before you decide to purchase it. A foreclosure can be much cheaper than similar homes in the same area. If you get the repairs done, you can make a good profit on the home when you re-sell the property

 

By: Karen Bellas

Owais Sayed

Owais Sayed

Sales Representative
CENTURY 21 Leading Edge Realty Inc., Brokerage*
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