House flipping is when a real estate investor buys houses and then sells them for a profit. Flipping houses has been on the rise across the nation and in 2019, the total number of houses flipped reached near 250,000 or approximately 6% of all home sales across the US.
There are two types of flip:
Fixer & Flipping
An investor buys a property that has the potential to increase in value with repairs. The investor makes money from selling the home for a much higher price (including the cost of repairs) than what they purchased it for.
Flipping
An investor buys a property in a market where pricing is rapidly increasing. The investor makes no repairs or improvements and plans to sell the property for a higher price for profit.
Flipping Phila mainly focuses on the Fixer & Flipping.
Fixer & Flipper Projects
Our Flipping Tips
Know the Market – understanding of the market and real estate trends in your area. Working with a real estate professional will guide you with the knowledge and information you needed to make the best investment decision.
Understand Financing – purchasing and making repairs requires working capital. Depending on project size, you might want to explore different financing options. The last thing you need is to put a pause in the middle of your project.
Create a Budget – knowing the cost and amount you plan to spend on repair will increase your profitability at the end of your project.
Smart Renovations – practical renovations and anticipating market trends will make your house more desirable. Even with a fresh coat of paint, updated hardware and new landscaping can have a big impact to your overall project.