do you think i will successfully flip a house if?

Question

i buy in a right nieborhood
i have good contractors
the market is rising

do you think i would profit?

Answer 1

yes to all concerns. good luck

Answer 2

Depending on your local market successful house flipping may still be possible,. I am a realtor in Las Vegas and I know of people successfully doing this today. I have done this myself in the past and made a lot of money. The key is finding the right property at the right price in the right area. The best way is to start at the end and work backwards.

First, determine what price homes are still selling. Let’s say for example that homes in XXX area selling for $250,000 are still selling well. Then, you need to locate a property in that area such that once you buy the property, rehab the property and sell the property for $250,000 you still made a profit. I am oversimplifying the elements below but hopefully the following will give you an idea.

Eventual Sale Price: $250,000 – be pessimistic as to what the home will sell for. This is a soft market.

Now subtract all the cost elements:

Profit: $20,000

Cost to Sell property: Use 7% (agent charges, state taxes, etc.) or .07 x $250,000 = $17,500

Improvement Cost. This will be different for each home. Use $40,000 as a typical number.

Holding costs (it takes time to repair a home and to sell the home and you have to make the payments during this time): $10,000

Acquisition costs: Use 3% of the purchase price or about -$5,000

$250,000 - $20,000 - $17,500 - $40,000 – $10,000 - $5,000 = $160,000

Thus, the MAXIMUM you can pay for the property is about $160,000. And, this has to be a property that once restored will sell for $250,000.

When you look at all the costs I listed above, the only one you can really control is the improvement cost. It is critical that you do not over rehab the home. If homes in the area with 5 year old stoves sell well, you do not need to install a new stove; a used stove that looks nice and is in good repair is the right answer.

I hope the above gives you some ideas.

Eric Fernwood
[e-mail]
http://www.iselllvhomes.com/

Answer 3

nope and here is why. You left out three very critical parts first insurance in some areas it hotter than a chineese firecracker, second property taxes and we all know how the govertment LOVES to spend money without cause. Three mortgage rates with the third being the most critical. The mortgage meltdown in Feburary had caused a lot of lenders to back off and not take so many risks (some have even gone under) and as such they are not writing riskier loans as they did two years ago. With that the lenders are taking closer looks at the buyers credit and what they can actually afford. House flipping died out back in 05 now is not the time to revive it sorry.

Answer 4

it depends on the condition of the house and what you can short cut, like do yourself instead of hiring people. also depending on where you live, the market is not rising! flipping right now is not a great way to invest, right now the thing would be to buy, rent it out, slowly improve over time and sell when the market goes back to a sellers market

this is a buyers market, and probably will be for a while. on top of the fact that some home prices are already atronomical compared to the income of areas...but in time it will turn, it always does.....

Answer 5

Good Luck with this venture. i am looknig to do the same thing right now. i am trying to be patient in the process of looking and I can tell you it is difficult. I am looking a fixer upper and I am making low low offers. I will not pay anywhere near listing price. i found something awesome but was a little too late, already sold. You can def make a profit if you wait and find the one with the the most potential for high resale. ALso be sure to ck pricing on your contractors you might be surprised at the difference in prices.BEst wishEs!

Answer 6

you will as long as your contractors know what they are doing and remember to be on schedule. Make sure you know who's going to be looking after what ,example ; Electrical, Materials, Plumbing, Drywallers, painters. Alot of times people think they can finish the job and end up making a huge mess not to mention waste of materials. Remember this as well agood contractor is not going to work for peanuts. Make sure you do your math on this. I know alot about this business, My husband owns and operates his own building services and we have been mighty successfull in doing so. We have flipped so many houses we are finished with the renovation thing .We strictly build new homes now only. Good luck you will succseed so long you do your math before you start this and make sure you interveiw good reliable contractors, Cheap isn't always the way to go could end up costing more in the long run, be careful.

Answer 7

You have to make sure you have enough for the mortgage every month and enough for all the work you're going to do on it. Sometimes even a house in the right neighborhood won't sell.

Answer 8

You also have to buy at the right price.

Good luck!

Answer 9

It depends on how much below market you bought it from, and how long before you resell it.

Answer 10

Anything is possible - just do your homework and make sure to stick to your budget. Good Luck!