Remember the flipping houses boom before the recession hit, where many people turned over run-down houses and sold them? It's making a small return recently, as investors were able to grab a ton of houses for dirt affordable and now are beginning to see a bit of a payoff.
Making cash on a house
Prior to the housing market imploding and a recession starting, many people turned to flipping houses. Clearly it was a good idea when people really were getting properties and there was a profit to be made but since then, it hasn't been as lucrative.
A lot of people do not make cash off a house. It is not an investment because an individual has to cover the house, repairs and improvements, taxes, insurance, maintenance and more. When flipping a house, a person typically buys it for dirt inexpensive and fixes it up to turn a profit.
According to the Washington Post, the house flipping industry has gotten more people in it. There was a 25 percent increase in the first half of the year over last year in the number of people in the industry, according to RealtyTrac.
Huge areas for flipping properties
The leading area for flipping houses was Phoenix, Arizona with10,000 flips. Arizona, Florida, Nevada and California were all areas hit really hard in the recession due to inflated real estate values, and they are also the areas where more people are flipping properties.
Areas with a ton of foreclosures were hit hard, such as Atlanta, Miami, Las Vegas and LA. 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 houses in the nation have been flipped and sold.
Needs talent
It is not all that easy to flip houses regardless of what you may think. In fact, it could be really difficult to come up with the cash to purchase the house. On top of that, the houses are usually uninhabitable whenever you purchase them and need a lot of work before they can be sold to someone, according to CNBC. It is costly, so make sure you research the house to make sure it is secure first.
According to MSN, getting a flappable property with no money down isn't really likely to take place and surely don't expect realtors to have homes that fit the bill. Auctions aren't always going to have many either.
The difference between purchase price and sale price is only about $29,432, according to RealtyTrac, which does not contain all the cost that went into fixing up the house. According to RealtyTrac, the net profit was much lower than that and makes it pretty costly to flip properties. Unless you know how you can do all the work yourself or have close friends who will do it for inexpensive, it may not be worth it.
Making cash on a house
Prior to the housing market imploding and a recession starting, many people turned to flipping houses. Clearly it was a good idea when people really were getting properties and there was a profit to be made but since then, it hasn't been as lucrative.
A lot of people do not make cash off a house. It is not an investment because an individual has to cover the house, repairs and improvements, taxes, insurance, maintenance and more. When flipping a house, a person typically buys it for dirt inexpensive and fixes it up to turn a profit.
According to the Washington Post, the house flipping industry has gotten more people in it. There was a 25 percent increase in the first half of the year over last year in the number of people in the industry, according to RealtyTrac.
Huge areas for flipping properties
The leading area for flipping houses was Phoenix, Arizona with10,000 flips. Arizona, Florida, Nevada and California were all areas hit really hard in the recession due to inflated real estate values, and they are also the areas where more people are flipping properties.
Areas with a ton of foreclosures were hit hard, such as Atlanta, Miami, Las Vegas and LA. 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 houses in the nation have been flipped and sold.
Needs talent
It is not all that easy to flip houses regardless of what you may think. In fact, it could be really difficult to come up with the cash to purchase the house. On top of that, the houses are usually uninhabitable whenever you purchase them and need a lot of work before they can be sold to someone, according to CNBC. It is costly, so make sure you research the house to make sure it is secure first.
According to MSN, getting a flappable property with no money down isn't really likely to take place and surely don't expect realtors to have homes that fit the bill. Auctions aren't always going to have many either.
The difference between purchase price and sale price is only about $29,432, according to RealtyTrac, which does not contain all the cost that went into fixing up the house. According to RealtyTrac, the net profit was much lower than that and makes it pretty costly to flip properties. Unless you know how you can do all the work yourself or have close friends who will do it for inexpensive, it may not be worth it.
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