Any of you ever get in the business of flipping homes?

[shockedcanadian]

Similar to the various shows we see on T.V where you purchase a dilapidated home, fix it up and sell for profit.

Let me know, I'm curious about hearing some successes, your process the challenges you've faced etc.

 

[RodISHI]

Did a few in years past. My parents did fifty-four over the years and it paid for their dream home.

 

[Auld Phart]

Pushed over an outhouse once, but didn't flip it.

 

[Manonthestreet]

Did a Farmhouse up north. Bought it for 80....put 20 into it, cleared 20. Took us 8 months. Afterwards price of homes had gone up by same amount so we were still locked out of getting a better place. Place was in nitemare condition to the point woman next door who had grown up in it asked why we didnt burn it down.

 

[johngaltshrugged]

It can be difficult to pull out much profit when you have to pay others for most of the labor so if you can do some things yourself, it all helps.
Build cushion into your budget because you never know when you will uncover unforeseen problems requiring more expenditures.
Plus, with the market going down, you want to get it done quickly before prices start falling.
Remember, with interest rates rising, the pool of buyers shrinks for every price range.
We are in a bubble right now with artificially inflated prices already, don't get caught holding something that can't appraise anymore because prices have come down.
I have done some & worked with others doing the same thing over the years. You can do well if you get the right deal in the right market.
Location & price is what to concentrate on

 

[shockedcanadian]

It can be difficult to pull out much profit when you have to pay others for most of the labor so if you can do some things yourself, it all helps.
Build cushion into your budget because you never know when you will uncover unforeseen problems requiring more expenditures.
Plus, with the market going down, you want to get it done quickly before prices start falling.
Remember, with interest rates rising, the pool of buyers shrinks for every price range.
We are in a bubble right now with artificially inflated prices already, don't get caught holding something that can't appraise anymore because prices have come down.
I have done some & worked with others doing the same thing over the years. You can do well if you get the right deal in the right market.
Location & price is what to concentrate on

I believe the U.S market is a far better environment for flipping. First, due to volume, second due to cheaper labour and options.

I've seen extreme situations on some T.V shows. A guy bought an absolute lemon for $1000. It was barely standing, but he put $100k into it and sold it for about $150k or so. He even bought the run down, abandoned house beside it for 7k and flipped a profit. Extreme cases, but he has his trusted General Contractors (this is huge IMO).

Even when I see people buy homes on the cheap for $100k and put $40k i, they are sellingthem for over $200k, The data I saw, in fact, suggests an average profit of about $60k in the U.S for flips. Not sure of what year it was, or location, but I assume this is based on more professional investors. Flipping is profitable for everyone and great for the economy as it keeps trades busy.

Americas free market rewards those who risk capital and essentially create something out of nothing. Some other countries would be wise to follow suit, but they won't. Over reaching state powers denies the liberty to flip and profit.

 

[RodISHI]

That location is important. I bought one my parents had done from them because grandmother wanted it sold and her cut for putting up the funds. It was down the street from our house, popular area in a small town. I set up a quick payoff with grand and used the place for local employee to live in for a few years. When I quit providing employee housing with it two years later I put high end carpet (small cabin so didn't cost much + I owned a carpet store), had a new furnace put into it, upgraded kitchen with nicer sink and counter and sold it for near double for what I gave for it. it sold within a few weeks of listing.

Use the best materials you can for the obvious things like trim and flooring.

 

[rightwinger]

Good investment when the Real Estate market is hot

You lose your shirt in a stagnant or falling market

 

[shockedcanadian]

That location is important. I bought one my parents had done from them because grandmother wanted it sold and her cut for putting up the funds. It was down the street from our house, popular area in a small town. I set up a quick payoff with grand and used the place for local employee to live in for a few years. When I quit providing employee housing with it two years later I put high end carpet (small cabin so didn't cost much + I owned a carpet store), had a new furnace put into it, upgraded kitchen with nicer sink and counter and sold it for near double for what I gave for it. it sold within a few weeks of listing.

Use the best materials you can for the obvious things like trim and flooring.

Definitely. I use the logic "buy the worst house in the best neighbourhood" Even if it were simply to live in (as long as the house was functional of course), this would be a sound approach. Both for ones own enjoyment in the community, and potential resale value if ones decides to move.

It's far less risky to buy a run down place in a better neighbourhood. Yes, you may not get a really great bargain in terms of real dollars, it won't be a squatter home, but in terms of relative dollars it is a FAR better purchase with much higher upside if you can afford the work needed.

 

[shockedcanadian]

Good investment when the Real Estate market is hot

You lose your shirt in a stagnant or falling market

Depends on your time horizon in my opinion. As with all things related to investments of any kind of course, "it depends" is always relevant.

My uncle, referred to as the "successful one" in the family told me long ago, "remember this in life, they can't make more land". He has owned many homes with this being his driving premise.

As it refers to single, detached dwellings, no truer words were ever spoken.

 

[Rambunctious]

Once... and that was enough for me....

 

[RodISHI]

Definitely. I use the logic "buy the worst house in the best neighbourhood" Even if it were simply to live in (as long as the house was functional of course), this would be a sound approach. Both for ones own enjoyment in the community, and potential resale value if ones decides to move.

It's far riskier to buy a run down place in a better neighbourhood. Yes, you may not get a really great bargain in terms of real dollars, it won't be a squatter home, but in terms of relative dollars it is a FAR better purchase with much higher upside if you can afford the work needed.

That particular one had a contractor neighbor (real prick) that had built two new homes on that street. It also had three lots. The high lot value and two new homes on that street is what priced the little one bedroom cabin up there.

 

[rightwinger]

The key to flipping is a quick turnaround.
Once you buy the house the clock is ticking.

If you can do most of the work yourself and have a good, inexpensive source of supplies, you can make money

If you have to rely on contractors who don’t consider your job a priority and you need to rely on supplies shipped from China…..you are in trouble

 

[evenflow1969]

Similar to the various shows we see on T.V where you purchase a dilapidated home, fix it up and sell for profit.

Let me know, I'm curious about hearing some successes, your process the challenges you've faced etc.

Yes, flipped at least one a year for the past five years. There is some money in it.

 

[HereWeGoAgain]

Similar to the various shows we see on T.V where you purchase a dilapidated home, fix it up and sell for profit.

Let me know, I'm curious about hearing some successes, your process the challenges you've faced etc.

That might have been a good idea 5 to 10 years ago but with housing prices taking a shit these days I dont see it as being profitable anymore.
Of course I could be wrong but thats how I feel about it these days.

 

[fncceo]

Any of you ever get in the business of flipping homes?​

Not since I left Kansas and the tornado belt ...

 

[whitehall]

"Flipping" is an intentionally trite word for investing money and hard work to spruce up a building that you invested a lot of money in and try to sell it in a risky economic environment. My guess is that the cable programs are fiction.