February 12, 2019
Real Estate Investment: Flipping Houses
The concept of flipping houses—purchasing a home at a relative discount, performing a number of material enhancements or repairs, and then selling the home at a profit, preferably as swiftly as possible—is one that gets many a prospective investor in real estate looking dreamy-eyed. In the last decade a plethora of reality-styled television shows emerged and portrayed the endeavor as an almost romantic undertaking, and its practitioners made it look remarkably easy. Suddenly many people in the public began to think, “I could do that,” based mainly on what they had seen on television.
But the fact is that flipping a home requires a lot of specialized knowledge, including a solid comprehension of what makes a house more likely to sell, how much repairs are likely to cost, and how to know the right place to buy and the right time to buy it.
One of the major indicators a veteran real estate flipper will look for in a home is that it is located in a neighborhood—and for that matter in a city or town—where the average home is only briefly on the market. A quick sale is key to making a profit and not losing out on mortgage payments and maintenance costs. What a flipper is looking to do is to buy a home that would sell quickly anyway and get more money for it than it would have fetched at market were improvements and repairs not performed.
What that mainly means is taking a home that might have priced in at the lower range of homes sold in the neighborhood and shifting its value into the higher range that has been seen in the same area. This is usually done by performing mainly cosmetic—that is, shallow and non-structural—repairs. These sorts of repairs do not cost much to perform, and are achieved quickly, but manage to enhance the perception of a home’s liveability remarkably.
If you’re looking to get into the real estate market by flipping homes—whether in Homosassa Springs, Florida; Boston-Cambridge-Newton, Massachusetts; Providence, Rhode Island, or any other city in these three states—give us a call. Here at Topouzis & Associates, P.C., we’re experienced at title searches and title curative services, and we are supported in supplying title insurance by numerous underwriters. We’ll put our vast experience to work for you, ensuring you are purchasing—and then re-selling—a home with clear title.