2007-10-16 11:55:36 · 5 answers · asked by Drewmon88 1 in Business & Finance ➔ Renting & Real Estate
The answer to that is either "You can make a killing if you buy correctly" or "You can lose both butt cheeks if you buy in the wrong market". Right now, the real estate market is in a state of disarray, with values all over the place. Not a good time to consider "flipping".
2007-10-16 12:05:35 · answer #1 · answered by acermill 7 · 0⤊ 0⤋
well if you do it right, you can do it with some success. you need some experience with repairing a home, construction, home buying, loans, money, etc. it takes a lot. free advice. buy a small fixer upper. i mean small and inexpensive, but not one regulation away from condemnation either. the buying process with all the inspections, etc, will give you a decent cross section of what you are in for. this will be your stepping stone. you would be really stupid to flip houses from a rented apartment. fix the property up, make it look good, have it appraised by an appraiser then talk to a real estate agent about what they would sell it for. As a set of numbers, you paid100k for the house, took 10k out of pocket for closing, and another 20k in repairs and polishing. thats 130k. If you are told anything less than 130k, hold onto the property and try again next year when city appraisals go up 9 this is different than a real estate appraisal btw). if they offer you over 130k, then consider what your time and effort are worth to you, then compare that to what the real estate agent said. if thats enoughmoney for you, figure all of your expenses needed to sell the house, and figure your taxes...realestate made money is subject to capital gains taxes and sometimes is cosidered icome...consult an accountant for that. there you go, from the trenches in the real estate game. I only flip 5 or six houses a year, pay all my taxes, and keep a low profile while living relatively comfortable. best of all, i keep my full time job, with all of my health benefits and drive nice cars to work while everyone talks about me behind my back out of jealousy. sound good? if you can make your first house a home then sell it without hesitation, you havethe game beaten. good luck. o yeah one more thing, buy a house now while prices are low, rehab your house then sell it when the market improves. buy lo, sell high, baby. we flippers right now are buying property left and right, and in a year when the market improves, sell sell sell.
2007-10-16 13:58:55 · answer #2 · answered by skid 4 · 0⤊ 0⤋
most of the time not much. Most budgets are doubled or triple what you think they will be to repair the home, then figure holding costs, real estate comissions of about 6%, then taxes and you dont have much left. If you are a VERY handy person and can do all or most of the repairs yourself you have a better chance. Make sure you do your comps first before buying and of course a home inspection.
2007-10-16 12:07:33 · answer #3 · answered by sutla 3 · 1⤊ 0⤋
If you make between 20 to 30% would be excelent year after tax. Beware most people shooting for good return, but end up with less or possibly lost.
If you are rehab expert or become one, then you may stand a chance to succeed.
Good Luck
2007-10-16 12:17:46 · answer #4 · answered by L L 3 · 1⤊ 0⤋
you win some
you lose some
2007-10-17 09:54:25 · answer #5 · answered by 6billionfriends 2 · 0⤊ 0⤋