Remember the flipping houses boom before the recession hit, where lots of people turned over run-down houses and sold them? It's making a bit of a comeback recently, as investors were able to grab a ton of houses for dirt affordable and now are starting to see a bit of a payoff.
Really making cash off houses
When people were really buying properties, there was a pretty penny to make when flipping properties. Lots of people were in the business of flipping properties before the recession began.
Most people do not make money off a house. It is not an investment because a person has to cover the house, repairs and improvements, taxes, insurance, maintenance and more. When flipping a house, a person usually buys it for dirt cheap and fixes it up to turn a profit.
However, the formerly-popular house flipping industry, according to the Washington Post. RealtyTrac, the real estate website, reports a 25 percent increase in the first half of this year over the same period last year.
Arizona viewing more flipping
The toughest hit areas in the country during the recession are where some of the highest numbers for flipping houses are. Nevada, Florida, and Arizona saw inflated real estate values, so they were all hit hard. Phoenix, Arizona saw 10,000 flips, making it the leading areas.
Areas with a ton of foreclosures were hit hard, such as Atlanta, Miami, Las Vegas and Los Angeles. These areas also saw a ton of flipping. There were 1,067 flips in Chicago this year, which is a thirty percent increase, and means the city is also getting a ton of flippers, according to the Chicago Tribune. About 100,000 homes in the nation have been flipped and sold.
Not as easy as it looks
It is essential that you research the houses to find a house that is worth flipping before getting into the process. It takes a lot of extra and cash to buy a house and put upgrades into it. Some people think it is easy to get a house, upgrade it and sell it for extra cash, but according to CNBC, most flipped houses are uninhabitable and need a new home. Make sure you research before you try it out.
It is hard to get a flappable property without putting down a good chunk of cash. Auctions do not always have great houses for sale, and it can get really expensive to pay money on a house and flip it.
The net profit on flipping homes is not very affordable either, according to the Washington Post. The average profit per flip on RealtyTrac was $29,432, which seems great except that is only the difference between purchase price and sale price. That does not account for any other flipping costs, which are ridiculously high. It is most likely not worth it unless you can do all the work in flipping the house on your own or can somehow get really inexpensive labor.
Really making cash off houses
When people were really buying properties, there was a pretty penny to make when flipping properties. Lots of people were in the business of flipping properties before the recession began.
Most people do not make money off a house. It is not an investment because a person has to cover the house, repairs and improvements, taxes, insurance, maintenance and more. When flipping a house, a person usually buys it for dirt cheap and fixes it up to turn a profit.
However, the formerly-popular house flipping industry, according to the Washington Post. RealtyTrac, the real estate website, reports a 25 percent increase in the first half of this year over the same period last year.
Arizona viewing more flipping
The toughest hit areas in the country during the recession are where some of the highest numbers for flipping houses are. Nevada, Florida, and Arizona saw inflated real estate values, so they were all hit hard. Phoenix, Arizona saw 10,000 flips, making it the leading areas.
Areas with a ton of foreclosures were hit hard, such as Atlanta, Miami, Las Vegas and Los Angeles. These areas also saw a ton of flipping. There were 1,067 flips in Chicago this year, which is a thirty percent increase, and means the city is also getting a ton of flippers, according to the Chicago Tribune. About 100,000 homes in the nation have been flipped and sold.
Not as easy as it looks
It is essential that you research the houses to find a house that is worth flipping before getting into the process. It takes a lot of extra and cash to buy a house and put upgrades into it. Some people think it is easy to get a house, upgrade it and sell it for extra cash, but according to CNBC, most flipped houses are uninhabitable and need a new home. Make sure you research before you try it out.
It is hard to get a flappable property without putting down a good chunk of cash. Auctions do not always have great houses for sale, and it can get really expensive to pay money on a house and flip it.
The net profit on flipping homes is not very affordable either, according to the Washington Post. The average profit per flip on RealtyTrac was $29,432, which seems great except that is only the difference between purchase price and sale price. That does not account for any other flipping costs, which are ridiculously high. It is most likely not worth it unless you can do all the work in flipping the house on your own or can somehow get really inexpensive labor.
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