Absolutely Not-providing you have realistic goals and know what you are doing flipping homes can still be a profitable endeavor in 2009. This does not mean you need to be a financial genius. The truth is that the majority of folks flipping homes are every day Joes and Janes like you and me. Being a rocket scientist, is not a requirement but you do need to be much smarter than you used to be to be able to make money flipping a Central Ohio property in 2009.
Think Conservative
Not in the political sense but as a general practice from start to finish. With Market conditions being what they are there is little room for error. Purchasing as low as you can, holding down costs of home repairs and improvements, selling at a reasonable price and keeping your focus on getting rid of the property quickly is essential in having a successful flip in 2009.
Keep Realistic Expectations
Unlike times past, in today's market it may be unrealistic to think that you will be able to move a property a few weeks after completion. Of course working with your Realtor you should be able to get comps and information that can help you gage probable selling time frame. Being able to obtain manageable financing rates will be key should you need to float payments until the property sells.
Greed is Not Good
No matter how tempting it is to price a property flip at the highest amount that the community will afford, it must be resisted. In today's slow market that would most likely be a recipe for disaster. The only thing you will succeed in is prolonging the sell of the property. In and Out as cost effectively and quickly as possible is the key. Granted this may not be as quickly as in days past but it still needs to be the motto by which you operated. Making a profit is the ultimate goal for your Central Ohio Flip, however, margins are likely to be a little tighter in today's market.
Reflections from the Past
Flipping properties 2,4, 5 even 10 years ago was not a whole lot different than it is today. Then as now property flipping was a high stakes game of reward and risk profitable only to those who understood and respected the rules and limits. A few years ago one could error and bounce back today the consequences of mistakes can be much harder to recover from.
Ready to make a profit flipping a Central Ohio Property or have other real estate needs, give me a call at 614-273-6406 or email me at vanessa.simmons@realliving.com.
For More Home Buying/Selling Tips See:
Should Your Central Ohio Investment Property be a Fixer Upper?
Drab Kitchen Make-Over...On a Budget
It is real hard to find one to flep where I am at. Normally multiple offers on the low ones. Not enough margin on the other ones.
Flipping can be a challenge and not for the faint of heart in this market. I do believe it is a great time for buying and holding.
Actually I work with an investor who has been able to buy low and flip home...she has the golden touch.... does alot of homework.
Chuck - My area still offers lots of deals and begging for investors or owners
Gary - I agree with your point it is not easy now especially with lending changes too.
Thanks for your comments
I've done 2 properties this year, you just have to know your market and buy them right. Make sure you can offer them for sale at an awesome price!!!
Everything I have made offers on. Either goes for a higher price or they are still sitting on the market. Maybe that will change...
Konnie- you said it all doing home work is key thanks for your comment
Hi Vanessa,
Great Job on this post it is informative. Sometimes people just want to jump in and get started. Doing you homeworrk was the right statement
Flipping is only for the most experienced investor. Of course, if you can find those deals that are way low, you can flip, but for the most part, flipping is not a good idea. "Long Term" is the only sure way in real estate.
Hi Vanessa, Good post. Thanks for sharing.. Keep posting best.
Best - Sash
Flipping is not dead in our market, but the way in which it was done is....We see investors buying bank owned properties, not doing a dang thing, and then flipping them and putting them back on the market for more..Very interesting phenomenon.
I agree with the "buy and hold" approach for now. There is going to be a lot of demand for quality, affordable housing in the rental sector in the short term. A great time to pick up great-buys, fix 'em and use them as income property for now.
Vanessa,
Thanks for another very informative post.
Vanessa,
Thanks for the great post I agree that flipping is still possible in some markets. In our market there are a few homes for sale here that I think could be flipped and definitely could be bought fixed and held for a few years for a great profit.
Good purchase price , sweat equity and low greed to price fair for the repairs.. It can still be profitable. I have a client doing jsut that.. At reasonable, affordable ready to move in homes at the end. It beats unemployment!
Judy- thanks for the comment
Bryan- you make a great point thanks for stopping by
Sasha- thanks for your comment and stopping by
Christinne- that is too bad about your market place that investors are lazy and not willing to show value. Thanks for your comment
Tom- I am working with investors who are flipping and making a profit but I do see how it could be a benefit to buy and hold.
Wendy- thanks for your comment and stopping by
Jackie- It comes back to all real estate is local.
Caron thanks for the comments and stopping by
Hi Vanessa - I'm working with some investors who are looking at "flipping." They need to consider locations and the cost involved in upgrading a property. I recently saw a condo placed on the market for $219K that the owner purchased 6 months ago for $179K. The condo was in decent condition but did need a little work. In going through this home the only real upgrades appear to be painting, appliances, and the replacement of some ceramic tiles. The cost for this investor was minimal and they are hoping for a huge pay day.
Jon, that is exactly the point I was trying to make here. In this market with so much competition you really have to price competitively on flips and make them attractive to buyers who are savvy and doing their homework. It may not be the wisest move to price so high unless you don't mind sitting on the property.