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re: Flipping houses as sole income?
Posted on 5/21/20 at 12:16 pm to 3nOut
Posted on 5/21/20 at 12:16 pm to 3nOut
quote:
we've been watching a ton of these as of late because we're about to remodel our 80 year old home and trying to get an estimate of what some of our ideas would run. Yes, we're meeting with contractors as well, but it's fun to get ideas. If the market was as lucrative as they make it sound at the end of the show, everybody would be doing it and making hand over foot. i have enjoyed the flip or flop 101 where the guy is "mentoring" people getting into the business and it shows how much they're paying interest as the job goes on. it is a fair cautionary tale to get something you can turn around pretty quickly and not get caught in a house with a bad foundation/termites/etc. i'm pretty sure the closing cost and some of the remodel costs are bullshite. We're looking at doing a kitchen remodel and these people are saying "12k" for a kitchen upgrade. unless they're doing purely builder grade materials, there's no way these TV kitchens are getting done for that much.
They are making more money off HGTV and sponsors than they ever will off one of those houses. And, that's with buying all the materials, appliances and furniture at or below wholesale.
Can you make some cash flipping houses, I'm sure you can but its nothing like HGTV shows.
0
Posted on 5/21/20 at 12:19 pm to bigblake
quote:
I imagine flippers are starting to get destroyed in this market. Especially those that bought to do a tear down and are selling new construction. I think you’ll see significant softness in luxury homes. Starter homes likely won’t be hit too hard because people need to live somewhere.
I think sprawl middle class gets burned the most in a time like this
Middle of the road in high end areas do ok. I mean, if you're in an elite part of Dallas or Atlanta or Houston, there is only so far values are going to slide and people who are doing ok still see the value in those opportunities.
Mid to high end homes in new growth areas with nothing really to stake the value into (central FL, Vegas, Phoenix) got absolutely destroyed in 08.
Posted on 5/21/20 at 12:21 pm to Sheepdog1833
Storage unit auctions > house flipping
Posted on 5/21/20 at 12:24 pm to Sheepdog1833
I've done it on the side. I'll say speed is the key. On your interest only 6-12 month loan you want to get in and out. Have your subs ready to rock and get the job done. In the beginning, don't get greedy and overprice your listing. Take quick sale profits at a discount and have something lined up asap.
This post was edited on 5/21/20 at 12:25 pm
Posted on 5/21/20 at 12:25 pm to shawnlsu
quote:
The real question is how long before its not financially feasible to rehab houses in a city that noone wants to be in.
And if working remotely becomes more common I think you'll find more people buy homes in more rural areas.
Posted on 5/21/20 at 12:30 pm to Sao
Posted on 5/21/20 at 12:32 pm to tigerinthebueche
and my favorite from having to watch these stupid shows with my wife...
Posted on 5/21/20 at 12:42 pm to weadjust
quote:
The reality part is that on the 40K profit they may end up with 10K or less in their pocket for 6 months worth of hard work and risk
Plus buying all the furniture and stuff they only stage for you for the finale. They don't factor any of that cost into it.
Posted on 5/21/20 at 1:02 pm to Sheepdog1833
I flip houses full time.
I was in indistrial sales for years, but took the plunge to do this full time 5 years ago after doing it on the side for over a decade. I have no regrets.
It has ups and downs.
I was in indistrial sales for years, but took the plunge to do this full time 5 years ago after doing it on the side for over a decade. I have no regrets.
It has ups and downs.
Posted on 5/21/20 at 1:05 pm to East Coast Band
quote:oh boy, insight like this is hard to come by
Keys to success, IMO, are finding those fixer uppers at basement bottom prices, throw some fix up time and money into them, sell them at a big gain.
Posted on 5/21/20 at 1:24 pm to weadjust
quote:
They leave out the part about that 6% realtor fee on the sale of 180K (10,800), closing costs, short term capital gains tax, six months of property tax and insurance, six months of interest, their labor,.....
This.
A raging housing market can help, but - for the most part - I am not sure house flipping brings in any more money "per work hour" than a normal, semi-professional job.
Posted on 5/21/20 at 1:26 pm to OysterPoBoy
quote:
Do they live in Waco?
Haha. No shite I was just about to say this.
Posted on 5/21/20 at 2:11 pm to Sheepdog1833
To really make profits and it be less stressful you need to be able to pay cash for the house. That way you aren't rushed and construction hiccups don't cost you as much but of course you have to have major money to be able to do this.
Posted on 5/21/20 at 2:37 pm to Sheepdog1833
The hard part is finding the houses.
Always remember that you make your profit on the purchase. If you pay too much, you can't make up for it by going cheap on the remodel or for selling it for too much.
Buy cheap, everything else works out.
Always remember that you make your profit on the purchase. If you pay too much, you can't make up for it by going cheap on the remodel or for selling it for too much.
Buy cheap, everything else works out.
Posted on 5/21/20 at 3:00 pm to Bjorn Cyborg
quote:
The hard part is finding the houses.
Always remember that you make your profit on the purchase.
Absolutely. Furthermore, you need to know what it will sell for and not go over budget while also budgeting over as there are often issues.
The most important thing to flips IMO, is having a good contractor that is willing to hustle for you. You need someone that will give you quick accurate quotes and can get shite done.
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