I see by the forums that the interest in flipping may be slowing - because of fewer posts. Maybe everyone is out flipping! For me - I’ve put it on the back burner the last month. I haven’t looked for properties. Any comments or thoughts on this? Is the housing market worrying you for flipping? TIA
Flipping in the sense of buying under-valued property then reselling without doing repairs is out in most markets. You can no longer depend on appreciation for profit or to cover up your mistakes. I also consider wholesaling where the middleman does a simultaneous closing, flipping as well. Wholesaling profits will be dimished in most cases for the same reasons as flipping.
Rehabbing on the other hand is always good! I track very closely how the depreciation is affecting comparable properties to my rehabs. Then when I determine my ARV before purchasing, I deduct whatever depreciation percentage for X number of months (time on market) to get a good idea of what the property will sell for, when it finally sells. Remodeled homes also sell much faster in comparison now that most of us are in a market where quality counts. My problem now is cold weather. No one buys houses when its cold. Mid December to Mid January I will pretty much give most of my employees the month off since my capital will be tied up in inventory we can’t move.
I will continue to look for properties because next spring I’d imagine the market will pick up a little. Most of my competition has thrown in the towel and went back to their day jobs so I won’t have to pounce on everything I find immediately before the voulchers get it.
Hi Danny - I agree - I am waiting to start my next postcard campaign until Spring. I too hope most of my competition (temporary competition) will be gone by then.
Here … winter is the buying season for many out of staters or “snowbirds”. Winter here is our time of year! LOL
I’m glad to see I’m not too off base in my thinking. Thanks for the comments.