What is house flipping
The principle: you choose a run-down property and buy it. The saying “buy the ugliest house on the block” is always going around here. Then the house is renovated and sold again for a profit.
The recipe sounds incredibly simple, but the dangers shouldn't be ignored. Here are some of them:
- hidden defects that are not visible at first glance and can make the renovation (the flip) considerably more expensive, so that in the end only a small profit comes out
- Overpayment of the purchased property
- too optimistic sales expectations for the property
- too optimistic assessment of the overall market
- Overestimation of one's own abilities for a professional renovation
- Underestimation of material and labor costs
- Overestimation of one's own creditworthiness with the banks
- wrong assessment of American taste in terms of home furnishings and equipment details.
So there are numerous dangers lurking. You need reliable craftsmen, a good schedule (not too short) and the money to survive a longer period of time - if the property cannot be sold straight away.
Renovation, yes, but how?
Another very important point is that you shouldn't necessarily be guided by your own taste: "You built, what people want, not what you like". So you should be clear about how you want to renovate the respective property before renovating.
The dangers are even greater in the current cooling real estate market in the US. If a completely renovated house waits too long for a buyer, the expected profit melts away very quickly, e.g. in the form of loan payments to the bank. One of the biggest mistakes is to assess the renovated property too optimistically with regard to the selling price and to offer it too expensive on the real estate market.
An overview of the current real estate prices is available at www.zillow.com. The approximate real estate prices in your residential area can be found here. There is a good article on the subject at: money.cnn.com.
This article is an excerpt from Live and work in the U.S.
By Just Landed
Other recommended articles
Did this article help you?
do you have feedback, an update or a question about this topic? Comment here:
- Where should SVG files be stored
- What are some underrated artists in 2019
- Which sports are better to do
- How are cones made
- Can I remove another Reddit account?
- Can you still love a poisonous parent?
- Is Warren Buffet worried about Trump POTUS
- How do venture capitalists rate startups
- What happened to the cross-channel hovercraft
- What are the expectations 3
- Should my sister have plastic surgery
- What Makes a Successful Marriage Successful
- Can planets orbit a blue star?
- What's your favorite stock right now
- Which are good bikes under Rs 100,000
- Is Jin from BTS gay
- How Sesame Seeds Prevent Diabetes
- Can someone do my homework
- When did the Rig Veda begin?
- Can I do IGNOU BCA regularly
- Are you good at Fortnite Battle Royale
- Where can I get help with OCD
- Why was credit invented
- Who is mighty Superman or Hancock
- School Furniture And Office Furniture In Verona
- What are ground herbs
- Can physicists be successful politicians?
- Are all background websites the same
- What is the electrical conductivity of graphene
- What is the point of giving birth at home
- What is the scope of general medicine
- Which band sang the song Get Up
- What comes after late-stage capitalism