As Realtors®, we are commonly asked for our opinions regarding the timing of flipping a house. Any time the housing market gets hot, more people consider using some of their savings to flip houses. Today, with a housing market that’s hotter than ever, you may be considering this yourself. Here are some things you should keep in mind before jumping into the flipping business.
Inventory is Low
This can be good and bad. If you find a property that needs some fixes and remodel it so it becomes move-in ready, you will likely sell the home fast. However, because inventory is so low, there are a lot of people bidding on houses, even fixer-uppers. Be careful not to overpay on a property.
Contractors are Scarce
If you call a remodeler, you may find that they may be booked out for months. This means if there is a part of the remodel you are unable to do for yourself, you will have to pay the mortgage until the contractor is able to get to your job. You’ll need to take into account these payments as part of the funds you will need to recoup upon selling. If you can do most of the remodel yourself and do not need the assistance of a contractor, you may find flipping homes to be a successful endeavor.
Material Lead Time
Because so many homeowners are remodeling their own homes or hoping to build new homes in new locations, materials are often backordered. Custom orders are pushed out further than normal. In addition, some appliances are difficult to purchase quickly should a kitchen remodel be part of the renovation. Keep this in mind before you buy a home to flip. Materials are also more costly now than they have been in the recent past, so this may be a consideration.
Flipping Houses Takes a Lot of Work
In addition to a financial investment, flipping a home will also require you to invest significant amounts of time. Even if you have a contractor you can count on, you’ll have many decisions to make and may also need to be there to let those doing the work in and out of the home.
Future Home Realty Can Help
As experienced Realtors® local to the Tampa Bay area, Jason Duraj and the team at Future Home Realty can help you find the right home to flip. And, of course, when you’re ready to list your newly remodeled property, we’re here to help with that as well. Call us today at (813) 992-7771 for a confidential consultation.