All About House Flipping
House flipping, or as it is commonly referred to as whole sale real estate investing, is a real estate investment strategy in which an investor buys a property and holds it for a short term to renovate it to increase its value and thereafter, re-sale it back to the market at a higher value.
There are various type of house flipping;
Market condition flipping
This is the most common type of house flipping because an investor buys a property at a lower value renovates it and then sales it.
Before deciding to go ahead and carry out market condition flip one should consider the location. Is that property in an area where there is potential in terms of real estate development? Secondly, is to ensure that you will be able to get your money’s worth in terms of profit, and this is done by enduring that there is a demand for such a property.
Quick fix flips.
Here, an investor buys a property and only works towards repairing the house to suite the market demand at the time so for example after carrying out research and you realize that house with wooden floors are all the range in the leafy suburbs you will work towards ensuring the properties you flip all have wooden floors, this is also referred to as renal flipping.
When it comes to flipping of properties the main things to consider is the market conditions, you should ask yourself whether there is a demand in the market. This is done by carrying out market research.
You should always buy the property at the lowest price and ensure you carry out market research. With this information, you are ready to go and flip houses.