2006-10-31 08:42:49 · 4 answers · asked by lee305adam00043 1 in Business & Finance ➔ Renting & Real Estate
Watch the tv show "Flip This House" (check your local listings) and see for yourself. If you don't have a pile of money sitting around to pay contractors to do the work for you, then you need to know how to do everything from plumbing and electrical to roofing and siding by yourself.
2006-10-31 08:45:43 · answer #1 · answered by kc_warpaint 5 · 0⤊ 0⤋
Pros are you can make a lot of money if you buy under the appraised value.
The Cons are you can fork out a lot of money in holding costs until it is sold. Unexpected repairs can cost a fortune as well.
I recommend buying to live in it for 6 months and put it up for sale while asking just under the value to sell quickly. Ask an agent to do a search for you and locate the "deals" meaning about 60 % of the appraised value. I also would pick up a book on investing in real estate or flipping properties. It could change your life. Try to get 100% financing to keep your money for reserves and repairs. Good Luck!! J
2006-10-31 16:50:31 · answer #2 · answered by Jasøn 1 · 0⤊ 0⤋
Pro's
-Potential to make quick money
-You are in control of your investment
Cons
-If you overpay and set unrealistic selling price you will fail in today's market
Overall I think it's a good way to make a living. However, you must have the right set of tools to be successful. Know your area and be able to spot a great deal, have a thorough inspection before you buy, have a good connection for these type of properties. I know a few people who are "flippers"; they are successful because they know the market and how to price for a quick sale. They sell within a 1-2 months period. If other properties are listed in the vicinty they are cheaper then all of them (except handyman specials) by at least 2-5% and are in much better condition. They key is to by real low.
2006-10-31 19:48:05 · answer #3 · answered by tianaramal 4 · 0⤊ 0⤋
You mean "flipping" houses?
Pros:
You can make alot of money if the price of the house goes up.
Cons
You can lose a lot of money if the price of the house goes down.
The market pundits say the housing market for flips is cooling off right now, so be careful.
2006-10-31 16:45:24 · answer #4 · answered by stick man 6 · 0⤊ 0⤋