Buying A House To Flip - Remodeling - Page 2 - DIY Chatroom Home Improvement Forum

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Old 06-24-2011, 02:18 PM   #16
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We had the property next to us flipped recently.

To my surprise everything was done right, complete new roof with new plywood sheeting, total gut and new sub floors with new hard wood floors, all bathrooms completely gutted and rebuilt. Complete kitchen remodel, new siding new driveway pored new stone veneer on front. Everything was hired out to professionals that did a great job!

it was only for sale for about 2 months before it was purchased, talked to the guy who did the flip. he said after all the work he put in and the fee's and tax he only made about 8k on the house and his average is less than 10k per property, he strategy was to have 3 or 4 houses going at the same time, sounds like he was able to bring in about 45k a year, in this area that's not exactly the overnight wealth some would lead you to believe flipping houses can get you.
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Old 06-25-2011, 12:35 AM   #17
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My wife and I are also getting into our first flip property. I'm a general contractor so pricing things is a little easier and making a quick assessment is also a little easier, but there is still a lot of honest homework that has to be done.

I think it's easy to start kidding ourselves about how great a home could be without keeping our eyes wide open to the realities of cost.

We are planning on doing several slow owner occupied flips as a way to avoid taxes, though you can use a 1031 to postpone your capital gains if you plan to do more than one. Just remember that it will catch up with you at some point.

Flips can get a bad rap, so don't be one of those flippers who uses cheap materials and cheap methods, do it right.

A little discouraging to hear about the $8K profit for the flip in the Portland market as that's where we are. But with a lot of patience for the house with the right kind of value I think more can be had.

Good luck.
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Old 06-08-2013, 02:58 AM   #18
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Thanks for the great advice, flipping a home can be risky. However, the ultimate goal of any house flipping project is to make money. You should always have an idea or how much money you want to make on your house flipping project. Flipping properties was a big pattern for a while there, until the housing industry crashed. However, the number of people doing it has begun to boost.

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Old 06-08-2013, 07:03 AM   #19
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My youngest son, out there in Cleveland, makes more than he could ever make flipping houses. He is basically spreading out mulch, trimming bushes, easy stuff like that. He does very well for himself. He does not want the headache of being a landlord. Flipping a house in Cleveland is hard to justify the big risk. I ran all the numbers for him and he is better off spreading mulch than flipping a house.
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Old 06-08-2013, 07:24 AM   #20
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I second the earlier advice to just buy yourself a motorcycle and have some fun. Believe me, house flipping is nothing like what you see on television. And having personally done both, rehabbing an existing house can be more work and headaches than building a new one. If you step back and carefully think through your plan, you'll see it is doomed to failure.
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Old 06-08-2013, 08:12 AM   #21
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Unless you want to come to Ontario, where a strong sellers market continues. Good luck finding a property though. Inventory in the Greater Toronto Area for the last several years is at a minimum.

A well priced property sells immediately,

For a flip be prepared to jump on a property the day it comes to market and often in a bidding war
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Old 06-08-2013, 08:56 AM   #22
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I only did antique homes and never had a problem turning a profit. I did have to keep in mind how long I could afford to hold the property and what I could reasonably afford to put into it going into the projects though. Lots of people avoid buying antique properties that need work so that worked to my advantage. And they are full of both magic and surprises as you open them up and work on them. IMHO new construction, at least for the American dreaming masses, does not come close to the craftsmanship that went into an original old home.

I refused to do crappy things like vinyl siding, laminate floors and stuff like that that just reaps of cheap. And can drop an antique property's value like a rock. Which means I had to buy the property for a good price, fix it up, an turn it within a fairly tight schedule.

Key to this was working with good real estate agents every step of the way. I have see too many people buy things, fix them up, and then consult an agent only to find they are doomed. And you have to fix things up often setting your own tastes aside and going with design aspects that appeal to many instead.

Home renovation people develop reputations just like builders do and it takes so little time for word to get around as to who is doing nice work. I guess most flippers don't care. I have seen some do some amazing things. And not it good way.

And sadly, it is often first time buyers buying their first home that get stuck with the shoddy practices and materials of flippers who sell them a disguised nightmare AS IS. I think it must taint their experience.

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Old 06-08-2013, 09:15 AM   #23
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I agree Stephen..nothing beats the chararcter and charm of a high quality restoration of a century home.

Often though todays savvy Buyers(at least in terms of what you see is what you get) are well researched in current market values and they will not pay more for a property then a comparable one down the St.

Some so called arm chair, mls experts forget to account for upgrades unseen. Behind walls and all that other very important stuff. They ony see the cosmetics like you suggest.

There is a big difference in that aspect and over improving a property to the point where you price yourself right out of the market.
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Old 06-08-2013, 10:19 AM   #24
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I picked up plumbing work from a flipper- I have decided I will never buy a flipping flipped house Too many things are band-aided and covered up
When posting in forums, letting us know your location will help others give better feedback/advice/solutions to your questions
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