With 207,000 homes flipped in 2017, house flipping is becoming hotter than ever. However, with rising price tags on homes and growing competition, the profit margins are becoming increasingly smaller. If you’re considering trying your hand at the house flipping, we have a few important considerations for you to help increase your return. Heading into your house flipping project with a few tips of the trade and knowledge of the current market situation will give you an edge over the competition and ensure you’re profiting from all that hard work that goes into house flipping.
- Know your numbers. The home of your choosing has to be a great price in a hot neighborhood. Beforehand, you should know exactly what your flip will entail. Map it out, get the quotes and set your budget.
- A tip from seasoned flippers is to go through real estate contacts to find not yet listed homes (aka “pocket listings”). It is getting harder to find distressed homes for sale and if you are able to snag a pocket listing, it is likely you will be able to get a better deal. It is a known fact that there is a lesser supply of homes with low price points, this is why it’s important to seek out expert advice from a trusted real estate network to get the most for your dollar. While it is much easier to find million dollar homes on the market, that high investment will lessen your house flipping profit in the long run. Check out this article from Fox on how to land an unlisted home.
- Location, location, location. Do your research. Find up and coming neighborhoods and cities with the best returns on investment for house flipping. In 2017, the cities with the highest gross returns were Scranton, PA, (168%), Pittsburgh (145%), and Baton Rouge, LA (123%). Consider these kinds of numbers when looking to make your first home purchase! Wallethub offers great insights to the best cities to flip houses here.
When thoughtfully executed, home flipping can be a fun way to make an extra income and see an impressive profit margin. Despite the increasing popularity of flipping, if you are considering your budget, investment, locations and financing, there is certainly an opportunity for success.
Let’s flip something together. Visit our website to get started using our free Deal Analyzer. Is that property you’re eyeing worth your hard earned cash? Let’s find out! We’re here to help answer all of your home flipping questions – contact a representative at Zinc today.
McCann, Adam. “Best Places to Flip Houses.” Wallet Hub, Evolution Finance Inc, 31 July. 2018, https://wallethub.com/edu/best-cities-to-flip-houses/23158/.
Olick, Diana. “House Flipping Hits Decade High, but Returns Are Shrinking.” CNBC, CNBC, 8 Mar. 2018, www.cnbc.com/2018/03/08/house-flipping-hits-decade-high-but-returns-are-shrinking.html .
Verwymeren, Adam. “Pocket listings: How to land an unlisted house.” Fox News, FOX News Network LLC,18 Sept. 2015, https://www.foxnews.com/real-estate/pocket-listings-how-to-land-an-unlisted-house .