Flipping houses was a big pattern for a while there, until the housing market crashed. However, the quantity of people doing it has started to increase.
Actually making money off properties
Prior to the housing industry imploding and a recession starting, lots of people turned to flipping houses. Definitely it was a great idea when people actually were purchasing properties and there was a profit to be made but since then, it hasn't been as lucrative.
People can make money off a house if they flip it as opposed to just living in it. Houses are a ton of work and cost a ton of cash because of improvements, repairs, maintenance, taxes and other costs you would not consider when looking at the purchase price. There is potential to make cash, but it does take work on an older house.
However, the formerly-popular house flipping industry, according to the Washington Post. RealtyTrac, the real estate site, reports a 25 percent increase in the first half of this year over the same period last year.
Leading flipping area
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 properties in the nation have been flipped and sold.
A hard process
It is not all that simple to flip homes despite what you may think. In fact, it can be really hard to come up with the cash to purchase the house. On top of that, the properties are generally uninhabitable when you buy them and need a ton of work before they can be sold to someone, according to CNBC. It is expensive, so make sure you research the house to make sure it is secure first.
It is challenging to get a flappable property without putting down a good chunk of cash. Auctions do not always have good homes for sale, and it can get really costly to pay money on a house and flip it.
Don't be seduced by reports of wild amounts of cash either. The Washington Post astutely points out that RealtyTrac reported a $29,432 gross profit per flip, which is just the difference between purchase and sale price; it doesn't account for flipping costs. RealtyTrac did not report net profit, or profit after overhead. Making friends with contractors is also a great idea, as an individual who doesn't know the best way to plumb the home, wire or find a wall stud is going to find themselves over their head in a hurry.
Actually making money off properties
Prior to the housing industry imploding and a recession starting, lots of people turned to flipping houses. Definitely it was a great idea when people actually were purchasing properties and there was a profit to be made but since then, it hasn't been as lucrative.
People can make money off a house if they flip it as opposed to just living in it. Houses are a ton of work and cost a ton of cash because of improvements, repairs, maintenance, taxes and other costs you would not consider when looking at the purchase price. There is potential to make cash, but it does take work on an older house.
However, the formerly-popular house flipping industry, according to the Washington Post. RealtyTrac, the real estate site, reports a 25 percent increase in the first half of this year over the same period last year.
Leading flipping area
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 properties in the nation have been flipped and sold.
A hard process
It is not all that simple to flip homes despite what you may think. In fact, it can be really hard to come up with the cash to purchase the house. On top of that, the properties are generally uninhabitable when you buy them and need a ton of work before they can be sold to someone, according to CNBC. It is expensive, so make sure you research the house to make sure it is secure first.
It is challenging to get a flappable property without putting down a good chunk of cash. Auctions do not always have good homes for sale, and it can get really costly to pay money on a house and flip it.
Don't be seduced by reports of wild amounts of cash either. The Washington Post astutely points out that RealtyTrac reported a $29,432 gross profit per flip, which is just the difference between purchase and sale price; it doesn't account for flipping costs. RealtyTrac did not report net profit, or profit after overhead. Making friends with contractors is also a great idea, as an individual who doesn't know the best way to plumb the home, wire or find a wall stud is going to find themselves over their head in a hurry.
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