Flipping houses can be an extremely lucrative strategy, and recent reports have shown it to be at an all-time high since 2006.
Here’s a few things you need to know.
When the real estate market is performing as well as it currently is, the time to enter this growing market could be right now for you. While foreclosures and old homes are popular properties to use in house flipping, the pandemic of 2020 has put many other homes on the market at affordable prices for a variety of reasons.
Homes that were flipped earlier in 2020 were up 6.3% from the previous data collected in 2019. The gross profit for home flips also slightly rose in the same time period.
So if you’re looking to get involved in the house-flipping industry, here’s a few things to know:
- You don’t need to buy an expensive fixer-upper. Homes flipped in the first quarter of 2020 were sold at a median price of $232,000 across the country and many homes in South Florida are being flipped in the five-figure range as well.
- Don’t expect to sell overnight. The average time to flip nationwide is 174 days, but with the given market going strong in South Florida, you can reasonably expect to potentially sell faster than the national average.
- You don’t always need to pay cash upfront. A significant number of homes (over 40%) in 2020 were purchased with financing.
- Profits are usually larger where home prices are higher. It’s important to know the local demographics and comps of the location in which you’re looking to buy and flip. A knowledgeable local realtor can help you very much with this part of your research.
Home flipping is more popular than it has been in more than 14 years and it could be a fantastic opportunity for you to temporarily increase cash flow or even venture into multiple investments as an on-going business. It’s important to have a knowledgeable and experienced realtor on your side to help you get started. If you’re interested, let’s connect and discuss your goals and how we can achieve them together!
*Data and statistics gathered from the 2020 U.S. Home Flipping Report from ATTOM Data Solutions