in pennsylvania are there any laws or restrictions on selling run down homes (either forclosures/ abandoned /tax purposes etc:) and hiring a contract company to fix them up and sell them? My neighbor told me that he knows a guy who buys 3 or 4 at a time remodels them and sells them for profit.($6,000.00 tax home plus $10,000 paid to the contrating company. then sells for $56,000, is this possible? are there restrictions like on how many a year? any thing would help. do you need to be a real estate agent or broker? or can anyone?
2006-06-28 08:55:02 · 5 answers · asked by need to know 2 in Business & Finance ➔ Renting & Real Estate
I am not sure about houses in PA, but I buy houses in Illinois. Some i keep for rental income and others I flip. There is money in flipping houses. For example I am completing a rehab now, paid $25K and put in 26K for total of 51K. Houses in the area sell for $95k and up. Minimum net could be $44K.
There are many things to consider: location, your credit score, start up costs, how long can you afford to keep it with no income. Once you sell a few, you will have working capital. Myself, I have rentals, and always have cash flow extra from these units, plus I can tap into the equity on the buildings I own and use to buy and rehab. There are a lot of books out there on flipping houses. I suggest you do your homework in detail to make sure you can do this.
2006-06-28 09:02:48 · answer #1 · answered by Midwest guy 4 · 0⤊ 0⤋
I don't think there are any rules as long as you pay all the applicable taxes.
In this declining housing market though, flipping houses isn't a sure thing any more.
More power to you. Hope you don't get stuck with tons of debt if the houses don't sell.
2006-06-28 15:59:46 · answer #2 · answered by parsonsel 6 · 0⤊ 0⤋
You do not need to be a realtor, but you should work with a good one.
Need a good Realtor?
I can recommend an experienced Realtor from your area that will give you OUTSTANDING service! I work with a network of Realtors across North Amercia.
http://www.pauld-kw.com
http://www.bhammls.com/dziedzic
2006-06-28 20:39:42 · answer #3 · answered by Paul D 2 · 0⤊ 0⤋
you just have to find a qualified mortgage professional to get you the lending on these homes, most lenders call these investor flips, i can finance in any state.
2006-06-28 17:49:42 · answer #4 · answered by Renita M 2 · 0⤊ 0⤋
it is called flipping homes. Yes it is ok to do this. as many as you have the$$$ to do it with. and many do make lots of $$$$ doing so
2006-06-28 15:59:17 · answer #5 · answered by golferwhoworks 7 · 0⤊ 0⤋