Flipping Houses Continues to Net Profits
Several years ago, a new word came into our vernacular: house flipping. A host of television shows, news articles, and infomercials sang the praises of buying old or run down houses at below market value, making renovations and improvements, then ‘flipping’ it and selling the house within the year, pocketing a tidy profit in the process. If you had money to invest, it seemed a good way to get a decent return, as long as you didn’t mind a little hard work. House flipping is still a viable way of making money on a property investment, and profits have climbed over the past year. Before you throw your hat in the ring, make sure you know the ins and outs of house flipping, and are confident that you have what it takes to make flipping work for you.
House Flipping Profits Increase
House flipping isn’t a get-rich-quick scheme, nor is it some flash in the pan trend doomed to disappear. In fact, recent news stories indicate that the profit margins for flips are up since 2014, reaching record highs. Reports of strong returns for flips state that investors are now receiving an average 35 percent return on their investment. The catch? With housing prices rising, investors have an increasingly difficult time finding properties at a low enough price to make flipping worthwhile. Cities with distressed properties and high demand hold the best odds for making decent profits. In addition to cities like Memphis, Chicago, Boston, and Washington, DC, New York is also on the list, offering house flippers a decent 41 percent return on their investment.
Tips On House Flipping
Is the lure of high profit margins causing you to consider house flipping as a way to invest money or generate additional income? If so, consider these practical tips for house flipping before you make up your mind:
- Be sure you have a thorough understanding of the local real estate market.
- Learn about various home financing options.
- Learn how to negotiate, as well as how to spot a good deal.
- Start checking out contractors, plumbers, electricians, and general laborers you might want to use.
- Make sure any home you consider is in good structural condition.
- Ideally, choose a house close to where you live, as you will be working on it extensively in order to sell it as quickly as possible.
In addition to the above, make sure you are getting a good value on any home you are considering flipping. The house should be priced below market value, in order to allow you to see the greatest amount of profit.
Contact Our Experienced l Estate Attorneys Today
If you’re thinking about ‘flipping’ a house as an investment, contact our experienced New York real estate attorneys today. At Cavallo & Cavallo, our attorneys can help facilitate and guide you through the entire process, while making sure your current assets are being protected. With offices in the Bronx and Westchester, we’re your neighborhood law firm, and will provide you with the efficient and effective legal service you need to handle all your real estate planning needs.