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Remember the flipping homes boom before the economic downturn hit, where lots of people turned over run-down houses and sold them? It's making a small comeback lately, as investors were able to grab a lot of properties for dirt inexpensive and now are starting to see a bit of a payoff. Source for this article:
Fast cash on a home
Before the recession, a ton of people flipped houses for a living. It made a lot of sense for those people when the industry was doing well and people were actually buying homes.
People can make cash off a house if they flip it as opposed to just living in it. Homes are a lot of work and cost a ton of cash because of improvements, repairs, maintenance, taxes and other costs you would not consider when looking at the price. There is potential to make cash, but it does take work on an older house.
According to the Washington Post, the house flipping industry has gotten a lot more people in it. There was a 25 percent increase in the first half of the year over last year in the number of people in the industry, according to RealtyTrac.
Oddly enough, the leading area for flipping properties in RealtyTrac's data is Phoenix, Ariz., one of the hardest-hit states in the real estate slump, with almost 10,000 flips. Arizona, along with Nevada, Florida and California were particularly affected, as real estate values were drastically inflated in those areas.
However, some of the worst-hit cities are flipping hotbeds. Other areas with increased activities contain LA, Las Vegas, Miami and Atlanta, all cities that were hit with massive foreclosures and plummeting values. According to the Chicago Tribune, it's started picking up in the Windy City as well. There have been 1,067 flips there so far this year, a 30 percent increase. Overall, almost 100,000 houses have been turned over for sale nationwide.
Getting the correct skill
It is not all that easy to flip houses regardless of what you may think. In fact, it can be really difficult to come up with the <a href="https://personalmoneynetwork.com/cash-advance">cash</a> to purchase the house. On top of that, the properties are typically uninhabitable whenever you buy them and need a ton of work before they can be sold to somebody, according to CNBC. It is costly, so make sure you research the house to make sure it is secure first.
According to MSN, getting a flappable property with no cash down is not likely to happen and definitely don't expect realtors to have properties that fit the bill. Auctions are not always going to have many either.
Don't be seduced by reports of wild amounts of money either. The Washington Post astutely points out that RealtyTrac reported a $29,432 gross profit per flip, which is just the difference between purchase and sale price; it doesn't account for flipping costs. RealtyTrac did not report net profit, or profit after overhead. Making friends with contractors is also a good idea, as an individual who doesn't know the best way to plumb the home, wire or find a wall stud is going to find themselves over their head in a hurry.
<a href="http://www.washingtonpost.com/business/economy/flipping-houses-is-booming-business-again/2012/10/14/63463f7a-0f3b-11e2-bb5e-492c0d30bff6_story.html">Washington Post</a>
<a href="http://articles.chicagotribune.com/2012-10-04/classified/ct-mre-1007-podmolik-homefront-20121004_1_home-prices-chicago-area-price-per-square-foot">Chicago Tribune</a>