Flipper, Come Home. All is Forgiven

By
Real Estate Agent with the BlueWater Realty team specializing in Martin County Residential Homes, Condos and Land Sales 3090099

Are you wondering if this is a good time to buy an investment property? What about fixer-uppers?


If you can find a reasonably priced fourplex, it could indeed be a good time to buy. Many
Investment Properties, fixer uppersauthorities think real estate prices will be rising soon. In many areas, they already are.


* Look for a property with positive cash flow, including a maintenance history that you could live with.


If the property is owned by a bank, it could be on the market for much less than a seller-owned property. One problem with buying it: You could be asked for a down payment of 20 percent to 25 percent.


Always make sure the building has been properly inspected so you know what repairs you would have to make.


* If you have the skills, a fixer-upper or repossession could be a good deal for you. After increasing the property's value, you could flip it and pocket a nice profit. Some boasters say that on a nice property, if you install granite countertops, stainless steel appliances and get a new coat of paint, you can sell it quickly. It's not quite that easy.


Bloomberg Business Week recently ran an article titled "Flipper, Come Home. All is Forgiven." The flipper became the symbol of real estate fever a couple years ago. Many of them lost money when the market tanked.


Today the situation is different. Not only are flippers not frowned upon, communities are welcoming them. They buy a property that was repossessed and is declining in value for lack of maintenance and repairs. They fix it up so it's a credit to the neighborhood and sell it at a nice profit. They do it all quickly.


* The Federal Housing Administration is helping. In February, a one-year waiver of anti-flipping rules took effect. Borrowers can now get FHA financing to acquire homes from investors who have held title for less than 90 days.


* If you're looking for an investment and can do the work of upgrading a property, you could be pleased with the monthly income from rents. Over time, rents will rise, and when the property is paid off, you would have a nice income strea
m.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Home Buying
Location:
Florida
Groups:
1st Time Buyers
Advice for Buyers
The Lounge at Active Rain
Tags:
investment
flipping
buying
homes

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the umbrella to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the house to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
361,513
Paula Hathaway, REALTOR, Sr. LBA,
Douglas Elliman Real Estate - Southampton, NY
...Finding Your Place In The sun!

Gabe: Funny how timely this is: I sold one of my houses in March this year for $1.150--the guy was buying it for his family for summer use. It just came back on the market with a minimal renovation, a small dormer on the back of the house, the claim of an additional bedroom (in the pool house!) and a new fireplace---he put it on the market for $2,399,000!!! This is more than flipping; it is outright fibbing! He may get the price!

Jun 09, 2010 09:01 AM #1
Rainmaker
686,951
Gene Mundt
www.genemundt.com - Joliet, IL
Mortgage Lender - Chicago/Chicagoland Mortgages

Gabe: You make a great point ... with rates and prices being what they are, now is a great time for a purchase of an investment property ... for those with the credit and monetary capabilities to do so.  Especially liked that you pointed out that investment properties demand a greater upfront downpayment.  I'll add that interest rates are typically higher too ... which most likely explains Paula's scenario above.  Fibbing?  I guess he had no problem doing that ... and will probably do it again.

Gene

Jun 09, 2010 11:45 AM #2
Rainmaker
191,284
Janice Sutton
1st Stage Property Transformations - Murrieta, CA
Home Stager - Temecula Murrieta

I totally agree with you that now is a good time to flip!  I have helped 4 investors flip 6 homes this past month!  As a professional home stager I am actually deciding that now is the time I too get into flipping for myself! :)

Jun 10, 2010 12:09 AM #3
Rainmaker
191,284
Janice Sutton
1st Stage Property Transformations - Murrieta, CA
Home Stager - Temecula Murrieta

Oh yeah and they all sold the same month!!

Jun 10, 2010 12:10 AM #4
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the truck to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
1,831,727

Gabe Sanders

Stuart Florida Real Estate
Ask me about Stuart FL real estate
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the tree to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information