Flips still profitable!

Guess flips can still be profitable

https://www.redfin.com/CA/Redwood-City/1450-Maddux-Dr-94061/home/1535664?utm_medium=email&utm_campaign=instant24_listings_update&utm_source=myredfin

Bought for $1.15M, sold for $1.65M. You can still make a profit on a flip! I did not notice foundation issues or anything.

http://www.heraldandnews.com/news/local_news/business/return-of-house-flipping-eases-affordable-housing-crunch-in-some/article_29f31e91-595b-5a89-a77f-dc60e6898874.html

I know the listing agent, he is partners with the flipper

Flippers have cash, know the deal, knowledge to make it move in…Everything flipper needs to plan ahead and execute the deal. Blind flip, by novice, are likely to fail. It is a business and sure it needs plan and resources.

Flipping fail only during unprecedented real estate down period like 2007-8, where flipper buys at high price and unable to sell downturn period. This is very rare scenario.

As long as economy is going up (any %) and down (5%), flipper has the profit.

In short, flips are profitable any time except up-2-down period.

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How does a novice/a newbie become an experienced flipper without trying “blind flips?”

Cost of learning can be reduced by doing some homework. Too blind, you may not able to have second chance :slight_smile:

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Here’s my advice:

  1. Aim for places with two-income earners who don’t have time to DIY, but do have money to pay for it to be done nicely.

  2. Do not buy a house that is lingering on the market. I’ve seen flips fail because they didn’t get that the house didn’t sell for a defect having nothing to do with the interior of the house, but all about location.

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Get a partner/contractor that has experience. …I work with an experienced partner in Stockton. .Even though I have been flipping since 1976, I still will use experienced partners, especially if it is far from home…My Stockton partner is looking for more investors. …send me a PM if interested. …

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If you have good cash, you can go with partner/contractor that has experience like the way elt1 suggests.

If not, you need learn by experience, on your own step by step, making small fixes like kitchen, bath room etc.

Remember hanera’s message “Cost of learning can be reduced by doing some homework. Too blind, you may not able to have second chance”.

During 2008, I found good Saratoga 10k lot property listed at 599k, but it was a tear down. My realtor said that I was not prepared for such level. She told me that such properties are for full cash rich people with sufficient time to devote tear-down/replace home.

After working on 4 or 5 homes,small improvements, I understand the complexity how long it takes to remodel small changes ranging from 15k to 40k.

My last project, a fixer, took 40k and 60 days to make it move in rental, I have to absorb two months mortgage, chase many contractors right from handyman, electricians, plumbers, garage door fixers,windows, doors, gardener/tree cutters, painters, cleaners, carpet fixers, laminate floor team and many others. Many of them are my known contacts using last 10 years.

It did not involve architects, city approvals. If so, it takes more cost and time.

Flips may cost easily 100k-600k or more level. You need to learn a lot on your financials, cost, estimation, issues, right persons. You must be ready with 20% cost overrun…etc.

Sorry for my bad english, many mistakes !

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Just do like the homeowner from whom I’m renting. Buy low, rent rooms to cover the mortgage and blunder thru everything else. After the rats have trashed the house try to sell at a profit to the next bufoon.
Works everyone for profit.
You have a roof over you even if it leaks.
You can always claim rental loss. .
Not directed at anyone except current landlord,
Just honest observations.

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It’s ironic, on the forums we talk about this being a period where only direct home buyers want to participate while the article talks about an increasing number on speculators.

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Another flpping. Sold for 1.5 - 2016. Rebuilt now , listed for 2.19m . How much they would spent for rebuilt ?.

It’s Cupertino!

Rough estimate $525k complete build cost+interest carry cost during holding (buy and sell) time+seller’s commission. They are RE/Build professionals and their cost may be very efficient !

I have been flipping houses since 1976…I wish I had kept them all…I changed my business plan in Tahoe. .Been buying fixers, doing minor repairs and renting them out…Getting 5-10% caps and 10% annual appreciation. Instead of fixing and flipping. …Buying and holding…Better from a tax point of view…Less work…And when I sell probably more profit…

For this, we need huge capital to hold homes, even if it is 25% down payment, that is the issue. When you flip, you generate capital and growth rate is faster !

Not all flips are good and not all holds are good. The best is to analyze which are good flips and which are good holds and mix both.

Brookwell home is good for flip as the flipper spent high amount of cash and the home is next to creek !

Waypoint started with one house in Antioch in 2009…They bought more, stabilized rents and borrowed 50% on each from First Republic …They raised more funds from private investors as they went…They sold to a hedge fund last year when they had 3500 houses…The model works and is scalable. .I am too old to build an empire…Just holding on to a few…going for cash flow sheltered income…

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"Luxuriously Newly Rebuilt Home"
To be honest, the looking of this house is terrible. I doubt they tear down more than one wall.

The roof shape and the front looking looks very original.

I bet they just extended the back of the house and rose the celling.