House flipping $$$$

[kwm]

Anyone on here make a living flipping houses or have at least one flip under their belts? I realize it can be very profitable in places like CA where the values are higher. I have been thinking about doing this as a side job/investment if anyone can offer any pointers. Thanks

[Porsche-O-Phile]

You're about two years too late.

[Dottore]

Good plan. Sell them short.

[cantdrv55]

I don't know about being too late. Foreclosures are on the rise. Check out RE prices in Bakersfield. More and more LA area investors are buying there, mainly foreclosures.

[Dantilla]

I've done it a few times, but not in the last couple years, because the market has been too hot. I may start looking again.

Rule #1:

You make money when you BUY, not when you sell. You've got to buy at below market value, something that hasn't been very likely in the overheated market.

My realtor's rule is "If it's been on the market for more than one day, it's not a good enough deal".

The true bargains will have several offers on the first day. That's the only way I've done it. Snagging them like that is fun.

[Jims5543]

Originally posted by Porsche-O-Phile
You're about two years too late.

No he is not. North Carolina / South Carolina / Tennessee and Georgia are probably the hottest markets in the country right now.

[turbo6bar]

A hot market doth not make a good market for flipping.

kwm, no one here can give you that magical insight. The only way to know is do it. I have not had success finding properties that give enough profit margin. I think you will find the true deals are few, but I do wish you luck nonetheless.
jurgen

[tabs]

This is just stupid...

[Rick V]

I flipped my rental house for a nice profit. It was just dumb luck on my part.
I personally feel that the trend of "Flipping" has led to a market where the average working slob can't afford to buy. JMO

[LakeCleElum]

I did it at just the wrong time. Bought a 3 unit rental building. Held it 8 years and only sold for 12K more than I bought it. After a million headaches......Bought at the top of the market......We could be at that point right now in some areas.....I have a few other properties that have gone up dramatically because I've held onto them for a long time.......

I think making a living flippin' houses today is like being a day trader when the market hit it's peak....

[Flatbutt1]

My son in law has been trying by buying handy man specials but the kid is really busting his azz. You can take a beating if you don't get a hot one and get in early. Make some money? Sure Make a living? Maybe.

[cantdrv55]

Hey, they do it on TV all the time. Can't be that hard.

[MikeSid]

Transaction costs kill most first time flippers. 6% is a large part of your margin. So unless you have a spouse who is an agent or broker (and you can effectively pay yourself) it's often difficult to carry, rehab, and sell at a profit. Another edge is construction connections. Paying retail for the rehab kills the margin.

The killer formula is spouses where one works construction and the other is a real estate agent. I know two couples that operate this way. They can make marginal deals profitable and as a result, can afford to outbid others that aren't similarly situated. That's what you are up against.

[Dantilla]

My "flippers" have been fixer-uppers. No structual work, just paint, trim, refinish floors, clean up the lawn and put it up for sale. Both fun and profitable.

[tabs]

Originally posted by kwm
Anyone on here make a living flipping houses or have at least one flip under their belts? I realize it can be very profitable in places like CA where the values are higher. I have been thinking about doing this as a side job/investment if anyone can offer any pointers. Thanks

.I would say your kinda slow catching on....Ya shoulda thought of this 7 years ago and U woulda done good, just ask Motion. Maybe U should just stick to your day job.

KWM, you seem like the last one in a herd of sheep...now lets see if this will turn the light bulb in your head on...After everyone has discovered something profitable, all the money has been picked up..you want to find undiscovered territory, where everybody is afraid to tread, there the money is just lieing on the ground waiting to be picked up...and where oh where could that undiscovered territory be? RE...nope, Bonds...Nope...Commodities including Gold and Oil...nope Cpllectables...nope ... all have made strong runs and the money has allready been picked up....so what asset class is left...that is still considered to be 25% undervalued...WHY ITS THE STOCK MARKET..Even though you hear about the DOW hitting new highs that only 30 stocks..the SP500 and NASDQ are still way off their highs. for the next 3 to 5 years the Stock Market is where the money is going to be...So instead of flippin houses you should be thinkin of being a Day Trader...or REALISTICALLY an investor.

[Nathans_Dad]

It's looking like I will make about 50% profit on our current house that we have lived in for 4 years...sortof a protracted flip I guess...

[Jims5543]

There is a mass exodus occuring in florida right now. Property taxes are skyrocketing and homeowners insurance is tripling.

Guess where everyoen is running to?

Georgia, Tennessee, NC and SC. Then you have the tweeners, those from up North that normally would move to Florida that are stopping off in these same states because they do not like the prices in Florida.

This area has been slow to take off like the rest of the country. But, it is about 2 years into what looks like a long run of increased value.

Dantilla and Mikesid give excellent advise. Find great deals. Make your wife or you go and get your RE license and you will be double dipping.

I am begging my wife to leave Florida and live full time in our house in NC, in 2 months I pay more in property taxes and homeowners insurance than I do in a year in NC.

Do

[Chocaholic]

Meeting with a RE agent (friend) to begin shopping for lake property (lot) on the same lake where we live full time. Lake property is always going up and isn't a negatively influenced by routine market / economy fluctuation. No building, maintenance to deal with. Clear a lot, hook up septic, put a dock in the water and put her up for sale. At least...that's the plan.

[Porsche-O-Phile]

Originally posted by Rick V
I flipped my rental house for a nice profit. It was just dumb luck on my part.
I personally feel that the trend of "Flipping" has led to a market where the average working slob can't afford to buy. JMO

+1

It's getting to the point where there will once again be two classes of people - those who own property and those who never will. Not sure which group I'm in yet, but it's certainly going that way.

Kind of ironic that we're reverting to a variation of a system which people resented for centuries (feudalism) although in this case, mostly the "owner" class will have lucked into it. Very strange how things are unfolding. . .

[turbo6bar]

patience graashoppa. Subprime market ugly. Credit tightens. Payday byeola. patience.