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Flipping Properties Becoming Profitable Again

By Cornelius Nunev


Flipping houses was a big pattern for a while there, until the housing market crashed. However, the quantity of people doing it has begun to boost.

Flipping houses not just for reality television

Prior to the housing industry imploding and a recession starting, a lot of people turned to flipping properties. Clearly it was a great idea when people actually were purchasing homes and there was a profit to be made but since then, it hasn't been as lucrative.

Most people do not make cash off a house. It is not an investment because an individual has to cover the house, repairs and improvements, taxes, insurance, maintenance and more. When flipping a house, a person generally buys it for dirt affordable and fixes it up to turn a profit.

According to the Washington Post, the house flipping industry has gotten a lot more people in it. There was a 25 percent increase in the first half of the year over last year in the number of people in the industry, according to RealtyTrac.

Arizona viewing more flipping

The toughest hit areas in the nation during the recession are where some of the highest numbers for flipping properties are. Nevada, Florida, and Arizona saw inflated real estate values, so they were all hit hard. Phoenix, Arizona saw 10,000 flips, making it the leading areas.

Areas with a ton of foreclosures were hit hard, such as Atlanta, Miami, Las Vegas and LA. These areas also saw a lot of flipping. There were 1,067 flips in Chicago this year, which is a thirty percent increase, and means the city is also getting a ton of flippers, according to the Chicago Tribune. About 100,000 properties in the country have been flipped and sold.

Requires talent

Flipping houses seems simple, but it isn't just putting in some brand new cabinets and cash rains from the sky. Many properties are foreclosures, according to CNBC, which have been sitting for a while and have to be rehabbed to be inhabitable, which can be costly. Researching each house is paramount and interested people have to take their time to find a house to flip that will be worth it, financially.

It is hard to get a flappable property without putting down a good chunk of cash. Auctions do not always have great homes for sale, and it can get really expensive to pay money on a house and flip it.

The main difference between purchase price and sale price is only about $29,432, according to RealtyTrac, which does not consist of all the cost that went into fixing up the house. According to RealtyTrac, the net profit was much lower than that and makes it pretty costly to flip properties. Unless you know how you can do all the work yourself or have close friends who will do it for affordable, it may not be worth it.




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