Flipping Houses: Is It Worth It?

house-flippingAs the housing market is recovering, a lot of people are determined to make the best of it- whether by taking advantage of the cheaper prices and lower interest rates through going out and buying a house for the first time, or by starting to invest in real estate through buying a home and renting it out. Even others are flipping houses. If you’re unfamiliar with the term, flipping a house is when you purchase a home that needs a lot of work for a cheaper price, remodel it, fix it up, and flip around and sell it for more than the sum of what you originally paid for it and what it cost to remodel it. Flipping a house can be quite an ordeal, so to help you decide whether or not it’s something you’d like to go into, here’s a list of a few pros and cons:

  1. Pro: You can make a lot of money in a fairly short amount of time. Because flipping a house is, well, flipping a house, you’re dealing with a lot of money. If you do it right, you can make thousands of dollars or even tens of thousands of dollars in less than a year. True, some projects take longer than others, and the amount of money you make varies greatly, but there’s potential to make a fairly large amount.
  2. Con: There’s a chance you’ll lose money. Investing in real estate, regardless of how careful you are, is always somewhat of a risk. There are a lot of things out of your control that can affect the price of your flipped house, and as we learned from the housing crash, things can go downhill rather quickly in the housing market.
  3. Pro: It’s an extremely useful learning process. If you’re very hands on and are able to do a lot of the remodeling yourself, you’ll need to learn (or already have knowledge about) a lot of home improvement processes, which can be very useful in the future with your own home or for others who may need help. Even if you hire out professionals to fix the house, a lot can be learned in the process that will be an asset to you in terms of understanding more about the housing market, how home improvements take place, and even how much certain jobs costs for future reference if you continue to flip houses.
  4. Con: It can be a lot of hard work. After reading the above pro, I realized that it actually might sound like a con to some. So if you thought to yourself that I was crazy for listing that as a pro, you may not want to get into the business of flipping houses. Unless you have a lot of cash at your disposal to pay other people to take care of all of it for you, it really is a lot of hard work either way you look at it.

The answer as to whether or not flipping houses is worth it, unfortunately, isn’t cut and dry. I may have listed some pros and cons of flipping houses, but it depends on the individual and the way they feel about the possible outcomes. So, is flipping houses worth it for you?  I’ll let you decide.

Leave a Reply

Your email address will not be published. Required fields are marked *