Flipping houses used to be a big thing. Granted, that's when housing as an industry was fairly healthy. Now, however, it it's been sick for a while, but more people are flipping properties again.
Fast cash on a home
Prior to the housing industry imploding and a recession starting, a lot of people turned to flipping properties. Clearly it was a good idea when people actually were purchasing homes and there was a profit to be made but since then, it hasn't been as lucrative.
People can make cash off a house if they flip it as opposed to just living in it. Homes are a lot of work and cost a ton of money because of improvements, repairs, maintenance, taxes and other costs you would not consider when looking at the purchase price. There is potential to make cash, but it does take work on an older house.
There was a 25 percent increase in the very first half of the year last year in the number of people in the house flipping industry, according to RealtyTrac. Definitely, the industry has grown a ton, according to the Washington Post.
Gaining steam
The top area for flipping houses was Phoenix, Arizona with10,000 flips. Arizona, Florida, Nevada and California were all areas hit really hard in the recession due to inflated real estate values, and they are also the areas where more people are flipping houses.
However, some of the worst-hit cities are flipping hotbeds. Other areas with increased activities include Los Angeles, Las Vegas, Miami and Atlanta, all cities that were hit with massive foreclosures and plummeting values. According to the Chicago Tribune, it's started picking up in the Windy City as well. There have been 1,067 flips there so far this year, a 30 percent increase. Overall, almost 100,000 homes have been turned over for sale nationwide.
Talent and skill needed
It is not all that simple to flip houses despite what you may think. In fact, it can be really difficult to come up with the cash to buy the house. On top of that, the homes are generally uninhabitable whenever you buy them and need a ton of work before they can be sold to somebody, according to CNBC. It is costly, so make sure you research the house to make sure it is secure first.
It is hard to get a flappable property without putting down a good chunk of cash. Auctions do not always have good houses for sale, and it can get really expensive to pay money on a house and flip it.
The net profit on flipping properties is not very inexpensive either, according to the Washington Post. The average profit per flip on RealtyTrac was $29,432, which seems great except that is only the difference between purchase price and sale price. That does not account for any flipping costs, which are ridiculously high. It is most likely not worth it unless you can do all the work in flipping the house on your own or can somehow get really affordable labor.
Fast cash on a home
Prior to the housing industry imploding and a recession starting, a lot of people turned to flipping properties. Clearly it was a good idea when people actually were purchasing homes and there was a profit to be made but since then, it hasn't been as lucrative.
People can make cash off a house if they flip it as opposed to just living in it. Homes are a lot of work and cost a ton of money because of improvements, repairs, maintenance, taxes and other costs you would not consider when looking at the purchase price. There is potential to make cash, but it does take work on an older house.
There was a 25 percent increase in the very first half of the year last year in the number of people in the house flipping industry, according to RealtyTrac. Definitely, the industry has grown a ton, according to the Washington Post.
Gaining steam
The top area for flipping houses was Phoenix, Arizona with10,000 flips. Arizona, Florida, Nevada and California were all areas hit really hard in the recession due to inflated real estate values, and they are also the areas where more people are flipping houses.
However, some of the worst-hit cities are flipping hotbeds. Other areas with increased activities include Los Angeles, Las Vegas, Miami and Atlanta, all cities that were hit with massive foreclosures and plummeting values. According to the Chicago Tribune, it's started picking up in the Windy City as well. There have been 1,067 flips there so far this year, a 30 percent increase. Overall, almost 100,000 homes have been turned over for sale nationwide.
Talent and skill needed
It is not all that simple to flip houses despite what you may think. In fact, it can be really difficult to come up with the cash to buy the house. On top of that, the homes are generally uninhabitable whenever you buy them and need a ton of work before they can be sold to somebody, according to CNBC. It is costly, so make sure you research the house to make sure it is secure first.
It is hard to get a flappable property without putting down a good chunk of cash. Auctions do not always have good houses for sale, and it can get really expensive to pay money on a house and flip it.
The net profit on flipping properties is not very inexpensive either, according to the Washington Post. The average profit per flip on RealtyTrac was $29,432, which seems great except that is only the difference between purchase price and sale price. That does not account for any flipping costs, which are ridiculously high. It is most likely not worth it unless you can do all the work in flipping the house on your own or can somehow get really affordable labor.
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