Remember the flipping homes boom before the economic downturn hit, where lots of people turned over run-down properties and sold them? It's making a bit of a comeback recently, as investors were able to grab a ton of homes for dirt inexpensive and now are starting to see a bit of a payoff.
Quick cash on a home
When people were actually buying houses, there was a pretty penny to make when flipping homes. Lots of people were in the business of flipping homes before the recession began.
People can make money off a house if they flip it as opposed to just living in it. Properties are a lot of work and cost a lot of money because of improvements, repairs, maintenance, taxes and other costs you would not consider when looking at the price. There is potential to make cash, but it does take work on an older house.
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.
Gaining steam
The toughest hit areas in the nation during the recession are where some of the highest numbers for flipping houses are. Nevada, Florida, and Arizona saw inflated real estate values, so they were all hit hard. Phoenix, Arizona saw 10,000 flips, making it the leading areas.
However, some of the worst-hit cities are flipping hotbeds. Other areas with additional activities include Los Angeles, Las Vegas, Miami and Atlanta, all cities that were hit with massive foreclosures and plummeting values. According to the Chicago Tribune, it's begun picking up in the Windy City as well. There have been 1,067 flips there so far this year, a 30 percent increase. Overall, almost 100,000 homes have been turned over for sale nationwide.
Talent and skill needed
It is not all that simple to flip houses regardless of what you may think. In fact, it can be really hard to come up with the cash to buy the house. On top of that, the homes are generally uninhabitable whenever you buy them and need a ton of work before they can be sold to somebody, according to CNBC. It is expensive, so make sure you research the house to make sure it is secure first.
Auctions do not always have the best homes, and, according to MSN, it is almost impossible to get a property that can be flipped with no money down. You need a ton of cash on hand to get the house.
The main 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.
Quick cash on a home
When people were actually buying houses, there was a pretty penny to make when flipping homes. Lots of people were in the business of flipping homes before the recession began.
People can make money off a house if they flip it as opposed to just living in it. Properties are a lot of work and cost a lot of money because of improvements, repairs, maintenance, taxes and other costs you would not consider when looking at the price. There is potential to make cash, but it does take work on an older house.
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.
Gaining steam
The toughest hit areas in the nation during the recession are where some of the highest numbers for flipping houses are. Nevada, Florida, and Arizona saw inflated real estate values, so they were all hit hard. Phoenix, Arizona saw 10,000 flips, making it the leading areas.
However, some of the worst-hit cities are flipping hotbeds. Other areas with additional activities include Los Angeles, Las Vegas, Miami and Atlanta, all cities that were hit with massive foreclosures and plummeting values. According to the Chicago Tribune, it's begun picking up in the Windy City as well. There have been 1,067 flips there so far this year, a 30 percent increase. Overall, almost 100,000 homes have been turned over for sale nationwide.
Talent and skill needed
It is not all that simple to flip houses regardless of what you may think. In fact, it can be really hard to come up with the cash to buy the house. On top of that, the homes are generally uninhabitable whenever you buy them and need a ton of work before they can be sold to somebody, according to CNBC. It is expensive, so make sure you research the house to make sure it is secure first.
Auctions do not always have the best homes, and, according to MSN, it is almost impossible to get a property that can be flipped with no money down. You need a ton of cash on hand to get the house.
The main 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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