To Live In It or Flip It

Published by julia | Filed under Buyer / Seller Tips, Miscellaneous, Real Estate

Regardless of whether you plan to live there forever, or flip it by July, a lot more thought is required these days.

Flipping houses is a favorite pastime of some real estate investors. Or at least it used to be. Now the purchase of even the smallest house can lead to inventory issues for those interested in buying and selling real estate. A much needed second look is now the norm.

When a house is listed for sale, it usually carries the ‘as-is’ terms of sale. This makes the house more appealing to all types of buyers. Mostly because of the price and the ability to negotiate a little on price, but also because the home will be cheaper due to repairs necessary to either live in it or sell it.

Either way, when a deal is struck, the real deal begins to take shape. The need for the immediate repairs to make the house inhabitable is first on the list. While this is being done, you get to take a closer look at the skeleton of the home to see what else has to be done. You may find that it only needs a new shingles. Or maybe it needs an entire new roof. These will make your plans for the house a little clearer.

When the decision has been made, you can then let the house and your creativeness begin to take shape. If you plan to live there for awhile, you will want to make the kitchen and bathroom(s) nicer than you would if you plan to flip it soon. These are just a couple of the items that will separate the house from the home.

This slumped market has forced would be flippers to think differently than they would have 3 years ago. A $60,000.00 house in 2000 sold for $150,000.00+ in 2007, and is now worth about $75,000.00. Investors can still purchase deals, but they won’t see the drastic increase in profit that they saw a few years ago. More realistic deals are taking the place of the outrageous. There is still a respectable profit to be made.

Real estate investing is a long term thing. Making 300% profit in 10 years isn’t going to happen again for a very long time. But making a decent profit is still possible if the deals are done right. Finding and making deals is the hardest part of the whole process. Especially if you have done it before. First time flippers should probably stick with one at a time. Take your time and do your homework before signing on any dotted lines.

No matter what the plans are, there are deals in real estate. Especially in the Tampa Bay area. Large inventories and ever dropping prices make now a great time to invest. But don’t look beyond what is attainable and sustainable. Big houses are tempting but usually require a lot more work than they are worth. Make a realistic budget and stick to it. You will be glad you did.