Is Flipping Homes in Highland Park a Good Investment?
Tracy King Realty
Apartments, Apartment Search
Flipping homes in Highland Park can be a highly rewarding home-selling experience, benefitting both buyer and seller, as long as it is done correctly.
Is house flipping an efficient way to make a living? At the beginning of the new millennium the soaring housing market enabled people to buy a less-than-luxurious home at a cheap price, spend several weeks beautifying and making improvements and then putting it on the market to make a handsome profit.
Run down homes in Highland Park in Northeast Los Angeles were purchased cheaply purchased by investors. Close by neighborhoods like Glassell Park, Eagle Rock and Mt. Washington also saw a huge spike in home flipping activity. Once purchased, these investing homebuyers could double or triple their money, since these same neighborhoods were in high demand buy buyers.
However, in 2008 the market crashed and since then the economy has been trudging up the slippery slope of investing in house flipping in order to make the housing market prosperous again.
In order for house flipping to be successful, there must be a heavy amount of momentum to push the process through quickly from the purchase to the re-sale. If you’re considering flipping a home in Highland Park, here are four tips to build up momentum by adding speed and precision to the house flipping process.
1. Purchase the home with cash. Loans may be helpful when purchasing an expensive dream home, but when it comes to house flipping they have more cons than pros. Loans take time to be approved and are accompanied by fees and interest that are unnecessary for owning a “flipped” house. Focus first on cheap properties that you can afford. Once you find your routine you will be able to purchase more expensive properties.
2. Sell the home fast. Once the remodel is complete, get it on the market immediately and sell it once you get a decent deal. Do not hold out for the maximum profit. Once you sell this home you can begin your search for the next and build up your momentum. If you sell three houses at a medium high price per year versus one house at a maximum high price, you can double or triple your profit.
3. Prioritize simple repairs. You will lose time and money if you attempt to remodel the house by redoing the bathrooms and knocking down walls. Focus on cosmetic repairs such as new paint, windows, carpet and concrete. These changes can transform a house of grunge into a house beauty.
4. Do your research. Before you purchase a house to flip, there are several key factors you should consider. Estimate how much time and money it will take to renovate. Look at similar houses in the area and compare prices to determine if your potential profit will be significant enough for all of the work and time that will be spent.
Highland Park - as well as Eagle Rock, Glassell Park and Mt. Washington real estate is an ideal neighborhood to begin the business of flipping homes. There are many older homes in these older, classic neighborhoods that need updating and fixing. And because these homes are in such high demand by buyers, it’s unlikely that you will lose money on your home flipping investment.