2007-07-27 02:27:07 · 7 answers · asked by 23and4 1 in Business & Finance ➔ Renting & Real Estate
I would say it depends on where you live. My husband tried buying a few houses to fix up and sell. We only ended up deeper in debt. My parents have several rentals but they aren't rich. Half of the time the rentals are empty. We live in a dying city so it's just not a good real estate market. If you live in a place where things are booming then you might be able to make money in real estate.
2007-07-27 02:30:47 · answer #1 · answered by angela 6 · 1⤊ 0⤋
For some reason people seem to think you cant flip in a slow or down market. I completely disagree. It is all about purchase price, fix up cost, and resale price. It doesnt matter if the market is increasing or not. The way you make money on a flip is not with the market increasing, but with the value you add to it. Yes the days of buying a dirty home, and slapping some paint, and maybe a little cleaning with bleach and make 30k is gone. If you want to be a true flipper, you can still make great money. See, you buy a house that needs flooring, kitchen, baths, roof heat etc. Then when you fix these items, you are adding the value, not the market. When your finished you sell for a profit. Yes the sale time can take longer, but it will sell. If you are paying heafty carrying costs, this will cut into your profits so becareful. Treat this like any other business and watch your numbers. Always be conservative on the resale price, never let an agent tell an unrealistic resale value, just to get the sale now. Always do your homework. I will give you an example of my last deal in this "down market" where flipping is impossible. LOL
Purchase price = 240,000
Remodel cost = Roughly 33,000
Carrying cost = None (I paid cash, if you can great)
Sale time = 3.5 months.
Sale price = 344,000
Profit = 71k.
I do this several times a year, who ever says it cant be done has no clue what they are doing. Its all about buying low,low,low!!!!!! Never be afraid to insult the seller with your offer. You may get some bad reactions, and even piss off the realtor, but in the end when one says ok to your offer, you will have a good deal on your hands. Remember, always stay in budget!!
2007-07-27 04:06:41 · answer #2 · answered by frankie b 5 · 1⤊ 0⤋
In my area, with all the people watching the TV shows, either in or wanting to get into flipping, it is driving up the price of prospective properties. And it depends on your level of skill, if you can do most of the work yourself, great. But if you have to hire contractors, this will cut into your bottom line.
Being a landlord is not for the faint of heart. Tenants are very challenging. Spend a few minutes reading through the forum here, all the tenants griping about this or that, landlords wondering how to evict non-paying tenants, etc..
2007-07-27 04:40:56 · answer #3 · answered by godged 7 · 0⤊ 0⤋
Five years ago, the answer was "yes". In today's crummy market, the answer is "not unless you have lots of extra cash and time to invest". You would need to buy cheap now and be able to hold the property until home values increase - which could take some time, maybe years.
2007-07-27 02:31:41 · answer #4 · answered by May 3 · 1⤊ 0⤋
If you live in an area with a booming market. Houston and Katy Tx are over flowing with new people. They can't build the new houses fast enough. Good luck
2007-07-27 02:54:42 · answer #5 · answered by Anonymous · 0⤊ 0⤋
It depends on your knowledge of home repair and willingness to do the work yourself rather than contracting the labor out. It also depends on the market in your area. I would highly research this before I went and jumped into it. What ever you decide good luck!!!
2007-07-27 02:46:22 · answer #6 · answered by ♥♥♥♥ 6 · 0⤊ 0⤋
If you had that idea 20 years ago on Long Island, NY, today you would be a multi-millionaire.
2007-07-27 02:36:03 · answer #7 · answered by mac 7 · 1⤊ 0⤋