2007-09-03 15:26:37 · 7 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
flipping a house is always a good investment, but you have to pay special attention to getting a very low price in this type of market.. If you can get a house for 75% of its value, you can make a good chunk of change.. However, you can no longer pay full market value for a fixer-upper, then just put in some money and make a profit.
2007-09-03 15:31:36 · answer #1 · answered by ........ 5 · 0⤊ 0⤋
Your best bet in Today's Market would be to buy a house that is in default and has a cLTV (loan to value - Current Mortgage / Full Market Value) of 70% or less, the lower the better.
Depending on your credit score (FICO) and your debt to income (DTI) ratio you would have a few options as far as financing. The first, assuming the house is at least legally habitable, you could pull cash out of the equity when you financed the purchase. Alternatly you can get a Construction Loan which usually comes at a higher rate but is easier to get as the cLTV is based off of the *future/proposed value* and NOT the *current value* of the subject property.
Hope this helps :-) If the property is in California I could possibly help you find one and get financing.
2007-09-03 15:41:04 · answer #2 · answered by Solstice 3 · 0⤊ 0⤋
We just had this discussion in our office today. A lot of our lenders are penalizing the buyers as well as the mortgage loan brokers if the house turns out to be a flip. They are requiring people to live in the house at least a year. We are in Texas
2007-09-03 20:09:05 · answer #3 · answered by Bill P 5 · 1⤊ 0⤋
It really doesn't depent on the market. It really depends on you being able to find a house that is on the low end of the selling market and being able to convert it in value to something better. If you make a profit it was a good deal, if you don't you messed up, that simple.pp
2007-09-03 15:33:16 · answer #4 · answered by ttpawpaw 7 · 0⤊ 0⤋
It may take longer to sell in most markets, and that is bad for your bottom line. Since it's a buyers market, they may ask for more, further hurting your profit.
2007-09-03 15:35:18 · answer #5 · answered by ? 5 · 0⤊ 0⤋
You've been watching too much...FLIP THAT HOUSE on TV!!!! You need money and endurance.....and a good source of workers/trades people who can be at your beckon call to finish on time.....Stress will be your middle name.....looks simple...but these people on TV are professionals.....
2007-09-03 15:32:47 · answer #6 · answered by Sammyleggs222 6 · 0⤊ 0⤋
yes its good to flip to gain equity
2007-09-03 15:35:09 · answer #7 · answered by latonya b 1 · 0⤊ 0⤋