motivated sellers

4 Things to Be Aware Of When Flipping Real Estate

If you have recently purchased some real estate for investment purposes, you are in good company. Recent reports suggest that as many as 25% of these purchases are made by those who plan on using the property for investment purposes only.  If you hope to “flip” the property there are 4 things you must be aware of that can put a damper on your profits.

 

  1.  Property Taxes.  Keep the property for a few years and you may experience a surge in property taxes especially if your taxes are reevaluated during that time. Some hot real estate markets have seen taxes nearly double in just 5 or 6 years.

 

  1. Renovation Expenses.  You may have purchased a “fixer upper” at a bargain rate. Once your project is complete will you be able to recover the expenses and make a profit especially if the value of your renovated property is above those in your neighborhood? In addition, can you withstand a correction in real estate values?

 

  1. Insurance and Mortgage Costs.  You will pay more for homeowners insurance if you do not occupy the residence and you have tenants. If you are financing the property you know that your mortgage rate is higher as well.

 

  1. Rental Pressures.  A market saturated with rentals will mean that the rents you can charge will be less than what you had hoped to receive. In some markets you are required to get special licensing in order to be a landlord. In other markets the legal rights of tenants mean you could have a lengthy and expensive battle in ridding yourself of a bad tenant. Will the lower income levels coupled with the added expenses drag your investment down?

 

Of course, you can limit your risks and costs by doing the majority of the upgrades yourself, appealing excessive property tax increases, and finding for yourself a trusted and dependable tenant. It isn’t easy flipping a home, but with a lot of luck and determination it can result in strong profits for you.

Jack BUYS Houses – Orlando is Central Florida’s premier house buying company. We pay CASH for our properties, which allows us to close in as little as 7 days. We purchase all types of houses, As-Is and in any condition, so there’s no need to fix up the property. If you or someone you know needs to sell their house quickly for any reason, please visit www.JackBUYSHousesOrlando.com or CALL ME NOW at 407-307-3245 and say, “JACK, I WANT A CASH OFFER FOR MY HOUSE”, and you will get one in 24 hours, GUARANTEED!!

Jack

Get More Real Estate Market Info... Subscribe Below!

Learn more about us and find other resources on selling your house below. Like us, follow us, connect!

, , , , , ,

No comments yet.

Leave a Reply