Flipping as Investment

Accountable · Post by **Accountable** » Mon Jul 11, 2005 5:23 am

I'm thinking about getting into real estate investing. Has anyone tried house flipping - purchasing a fixer-upper, renovating it, and selling it at a profit? I'm thinking about doing this, or possibly buying a duplex and renting out one side as I live in and fix the other side.

Opinions??

Accountable · Post by **Accountable** » Mon Jul 11, 2005 5:57 am

TW2005 wrote: If you want more info on how Forecloseures work, let me know.
I'm definitely interested. Thanks

I'm equally interested in why you are a former real estate agent.

Accountable · Post by **Accountable** » Mon Jul 11, 2005 6:58 am

You're way too young to be so wise.

Half the fun of life is making mistakes so you can have conversations years later like: "Oh you think you had it tough? let me tell ya ..."

Now, about foreclosures ... ?

Jives · Post by **Jives** » Mon Jul 11, 2005 7:53 am

TW2005 wrote: It was fun at some points, and made good money for the year that I was active, but I wasn't happy with it truly.

The same reason I'm not a active-duty fighter pilot anymore.

I'm not going to do a job for the rest of my life if I'm not happy doing the work.

The reason I've had 157 jobs and 3 careers. Also the reason I have 11 years of college and 3 degrees.

As a home-improvement nut and a general handyman, that whole "property ladder" thing sounds really fun, but be prepared to work your little fingers to the bone. I also hope you don't have any back problems, but if you don't...you will.

I've built a deck onto my house, added a jacuzzi, repaired almost every kind of major appliance there is, rewired my home for sound, TV, and internet, put in digital thermostats, and completely made-over my air-conditioning system. I've also trimmed trees, cleared brush and a host of other landscaping projects. Believe me, to do it right is a years-long exercise.

Improving a property is lots of fun, if you can afford to take your time and do one little project at a time. Unfortunately, that's not what happens in real estate. You have a deadline, or else a second mortgage payment kicks in.

Accountable · Post by **Accountable** » Mon Jul 11, 2005 8:38 am

Jives wrote: As a home-improvement nut and a general handyman, that whole "property ladder" thing sounds really fun, but be prepared to work your little fingers to the bone. I also hope you don't have any back problems, but if you don't...you will.
Been there done that, too. I really enjoy working with my hands (and back :p ). We just sold our first house. We'd bought it new with no landscaping. I built & installed some cabinets that actually functioned, and did all the landscaping including irrigation and a paver patio. Came out really cool. I also did a short handyman gig with a new home builder & learned a lot.

I think this is really something I will look into, even though there is some stress & risk. :yh_nailbi

nvalleyvee · Post by **nvalleyvee** » Mon Jul 11, 2005 6:26 pm

You really have to look at the area you are buying the fixer-upper. I've done several and had to sit on a couple to turn a profit. Don't plan on doing all the renovation work yourself - so add some money in for what you cannot do. My latest was to buy a 3,000 square foot house on 3/4 acre for 90,000. I asked several contractors to give me bids - they all came in at 100,000 range. I then went to my real estate agent and asked for resale value based on renovation. The house now appraises at almost 400,000. Be sure to look at buy cost - vs -renovation - vs - resale. You can get burnt.