Flipping homes is certainly a tempting proposition. With rates hitting historic lows once again and home prices hovering at bottom many real estate investors can’t help thinking the time is ripe for buying up homes. Buying distressed properties at bargain prices, making improvements to the properties and selling them for a profit seems like a great way to make a profit. The question is: are you ready to flip?
The one major drawback of fixing and flipping is that there are no guarantees. You may buy a home, fix it up, and be unable to sell it in the time frame you desire. You will have far less headaches and stress if you acknowledge the fact that you have no idea how quickly you can sell your “flipper” up front. Patience and the ability to sit on your investment are key.
Another important aspect of flipping involves the improvements you are going to make to the property. Certainly updates are good but be aware of the return for your investment. Do not go overboard or too fancy unless the neighborhood and nearby homes warrant such improvements. It certainly is a good time to flip homes considering the cardinal rule of investing is “buy low and sell high”. The longer you can hold on to a home you buy today the better your profit will be in the long run.