A question on many minds is “Has flipping houses for profit over.” The answer changes with locations.
A cottage industry for many who moved every 2 or 3 years to take advantage of appreciation plus the tax break of not taxing people who have lived in their primary residence for the last 5 years. (emal me about this tax break) jill@heers.com
I recently sold 2 homes to flippers. They were both bank foreclosures and in bad shape. One has already been remodeled in 1 months time. He was a staff sergeant, well loved Marine home from his fourth tour of duty in Iraq and nothing was too difficult for his team of free volunteers. He is ready to resell and I am recommending that he rent it or if he has to move and wait for a better market but even in today’s market this home would go for a tidy $100,000 profit.
In San Diego North County there are homes in older neighborhoods 2 miles from the beach that are selling for $250,000 to $300,000 and this is making it possible for the Marines and Navy families to get in on the American Dream of Home-ownership. Rates are as good as they get and if a buyers credit is good it is a great time to buy.
I am buying 2 homes right now. One is here in Oceanside Zip 92056 for $430,000 for 2000 sq, ft. . It is a keeper as I use rental housing, (paid off by tenants) for my ultimate retirement plan. I avoid stocks and annuities that I know nothing about and stick with realty that has supported my family for many generations.
The other buyer has gathered up a partner with good credit to buy his flipper and he only looks at bank owned. He has had frustrating experience waiting for short-sales and dragging me to realty auctions. I talked him out of one that had a cracked slab. He really wanted that house but the crack was more like a crevasse with 5 inches apart and a 1 inch level difference. I have sold homes with cracks which are often easily repaired by professionals that shoot acrylic in them and charge around a $1000 depending on the size. But this difference in the level was really a scare factor. The house would have to be re-leveled , Jacked up or scraped off and start over. For my buyers flippers I look for good foundation, decent roof, and good bones plus neighborhood factors such as traffic or neglected homes.
My son does a really cool thing with flippers. Since his business is in exotic palms he has several cranes. He goes and buys a crack house in a terrible neighborhood and then starts making trading deals with the tradesmen in the neighborhood. He trades their concrete work or carpentry or plumbing or electrical skills for his re-landscaping of the front yard with beautiful ponds and palms. His house get fixed up and when the buyers look at the neighborhood it is all upscale palmed out. He has accomplished 2 important things. He made lotsa money and he forever changed the neighborhood. Smart kid! but then I AM biased.
Flipping is not over. It is not as easy as it once was where your house appreciated $10,000 by the time escrow closed but it is doable. AND now is a great time to buy. The realty pros are buying. Will the market drop more? Probably. But my 93 year old Dad who is still building says “You don’t care what you pay for it, You should care what you will get out of it”.
I also just bought a house in Bellingham Washington after selling my flipper in Birch Bay WA for a cool $100,000 profit. Washington around Seattle and North is a HOT! Market right now. sizzling hot. I was looking for cosmetic fixers under $300,000 in great neighborhoods and it is winter (closed Jan 20th) . I lost my first 5 bids and I am doing it from here (Oceanside CA) sight unseen. I of course hire a professional Realtor. I was finally successful with my 6th bid and bought a great house circa 1978. Needed cottage cheese ceilings removed and linoleum change to wood and some reconfiguring of Kitchen with granite and new cupboards plus new baths. I love this home and would love to keep it but it was $224,000 in a custom home neighborhood of $500,000 to $1,000,000 dollar homes. The elderly sellers moved to be near their kids and had let the yard grow 1/2 acre on a quiet corner and now the yard is filled with 40 year old Rhododendrons. I will have to hide my eyes when I get those trimmed back.
The point is, if the flipping market isn’t where you are then go to where it is. There are highly professional Realtors everywhere and even though I am one I still always hire one in other areas. Its a commission savings that could cost me a lot by doing it on my own. Email me for a referral wherever you want to flip. Texas and Washington are hot right now and very affordable. and California will always be good in the long run, especially the beach.
Happy house flipping
P.S. I have alist of the best vendors, lenders and Realtors if you need a referral
