In the US, nearly 50,000 homes were flipped in the first quarter of 2019 alone.
House flipping has become incredibly popular as people seek a way to make big money. Purchasing a house, doing it up, and selling it on for a profit is something many people are trying to do.
Is flipping houses worth it? Is the amount of time, effort and money you put into it worth the rewards?
Read on as we look at some of the pros and cons.
People wouldn’t flip houses if there were some serious upsides. Here are some of the most important.
Big Potential Profits
The number one reason people flip houses is to make money. Houses sell for hundreds of thousands of dollars, and if you can boost a house price by even a fraction, there are thousands of dollars to be made.
The beauty is that when house prices are on an upward trend anyway, your house is worth more from one day to the next without even doing anything. By updating and upgrading the house, you have the potential to make a serious return on your investment.
Flipping houses is a complex task. The more you do it, the better you get at it.
When you sell a house you’ve flipped, you’ve suddenly got a big chunk of money just sitting ready to be used on your next project. All the mistakes you’ve made on previous projects will help you to do things better this time around and make even more profit.
Sense of Achievement
At the end of a project, you should have a house that looks so much better than when you bought it.
After all the hard work you’ve put in, you deserve the sense of achievement that this will give you. It can become quite addictive.
If flipping houses is so good, why isn’t everyone doing it? That’s because there are a number of downsides too.
Whilst flipping houses has the potential to make you a lot of money, it can also lose you a lot of money.
If you spend your budget updating and upgrading the property you buy, only to find that it sells for below the price you paid, you can lose thousands and thousands of dollars. You may also find it takes a lot longer to sell than you predicted. It’s a risk that you need to take seriously.
With so much money on the line, it’s inevitable that there will be a level of stress.
There’s also all the hard work you have to put into the project. You need to plan everything from what color to paint the walls, to how to get rid of all the waste (click to read more) and keeping on top of it all can really wear you down.
On the flip side, if you do make a good profit, you can afford to take some time off to recharge before the next project.
Is Flipping Houses Worth It?
Is flipping houses worth it? At the end of the day, that’s a question only you can answer.
Do you have the funds to take on a project? Can you afford the financial risk? Are you willing to put up with all the hard work and stress that will come with it?
If you do decide to take on a house flipping project, we wish you the best of luck. For more tips and advice be sure to check out the rest of the site.