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Flipping A House

by Phyllis DiBlasi, GRI, CRS 04/14/2019

You can make money by investing in real estate. One way you can do this is by flipping houses. Flipping a property refers to when you buy a house to sell it for profit. The purchase is a short-term investment that requires much planning as it could be quite dicey. Buying a home to sell is a great way to make money, but it requires skill, careful consideration, research, and sometimes pure luck. No matter what kind of property you decide to invest in, there are many things to consider when you are getting ready to start flipping houses.

There are two main types of house flipping:

- A real estate investor purchases a house that could potentially increase in value if repaired and updated. After completing the renovation, the investor makes money from selling the home for a higher price than the total cost of the purchase and improvements.

- A real estate investor identifies an undervalued property in the market in a neighborhood with fast-rising home values and holds the property for some time until the house has a higher value. They then resell the house profitably.

Common types of property to flip

- Single-family houses: These are the most common types of homes to flip. These include bungalows, semi-detached houses, townhouses, and freestanding homes. They are the easiest to buy and sell as they are most readily available.>

- Multi-family residences: You can renovate the existing units or add more units to the property to make it more attractive to buyers.

- Retail properties: You can buy a property and restore it to make it suitable for specific use as a restaurant, bar, or store.

- Land: This is the most difficult as there are more processes involved and building on a new property is more expensive than renovating an existing one.

Benefits of house flipping

- You have a significant level of control over many elements of the project through research and analysis

- You can flip any house as long as it fits your needs and requirements.

- The team you hire can significantly influence the success of your flips like an experienced real estate agent, an interior decorator, and a reputable contractor.

Disadvantages of house flipping

- You might lose your money if you don't get all the expenses right or you run into unexpected costs

- Sometimes you have to pay capital gains taxes when you sell a house.

- You may end up spending more than you should on a home if you misjudge the neighborhood.

If you are looking to start investing in real estate, flipping houses is a great way to start. Speak to a real estate agent and an experienced contractor to begin.

About the Author

Author
Phyllis DiBlasi, GRI, CRS
Excellence in Action Originally hailing from Baltimore, Maryland, Phyllis DiBlasi is a graduate of Saint Agnes Hospital School of Nursing with a degree in Nursing as well as earning a Business Degree from Mount Saint Mary's University in Emmitsburg, Maryland. A resident of Sarasota, Florida since 1995, Phyllis has found "Paradise" amidst its pure white sandy beaches which are touted as the crowning jewels of the Southwest's Gulf Coast. As a full-time professional REALTOR, Phyllis specializes in the sale and marketing of residential properties, condominiums, golf course homes and waterfront properties in Sarasota, Lakewood Ranch, Longboat Key, Siesta and Lido Keys. Phyllis DiBlasi has been the recipient of numerous awards in recognition of her outstanding performance in Real Estate which includes being selected as a Five Star Real Estate Agent Best in Client Satisfaction since 2006, proving, yet again, that she is someone you can truly depend upon. Phyllis has deservedly earned Real Estate's most illustrious professional designations: GRI (Graduate Realtor Institute); CRS (Certified Residential Specialist) considered a PHD in the real estate field. "Accept nothing less than excellence when you are buying or selling a home".