4 Different Ways To Flip A House
“Flipping” a house has recently emerged as a growing trend in the real estate market. People are purchasing old, run-down properties at a low market price, increasing its value by renovating it, and rapidly re-selling it for a quick profit. Flipping can be handled in several different ways, and if the cards are played right, you can end up walking away with a lot of money in your wallet. Given below are 4 different ways you can flip a house, with each method guaranteeing you a handsome profit.Buy the house, fix the house, flip the house.Tried and tested by many, this is the most common way to flip a house. Opting for this method involves you purchasing a house at a highly discounted price, remodeling and renovating the house, and then putting it back on the market. While this is easy enough to do, many things can go wrong. Make sure you don’t underestimate the costs of the repairs as this can set you back financially. Also, do your research on the current real estate market trends, and determine how much of a profit you will be able to make.Wholesale flipping.This method involves you purchasing a multiple number of houses at a discounted rate, and selling them to a real estate investor for a small profit. The real estate investor will put in all the work and take the project the rest of the way. Though you may reap only a small amount from each sale, you can increase your profit by selling multiple houses.Buy a house in good condition, and flip it as it is.If you don’t want to risk investing in the renovation of an old, run-down house, then opt to buy a house that’s in a decent enough condition. If the house you purchase is in a decent enough condition and requires only a few immediate repairs, then you can flip it as it is.Buy the house, refinance it, and lease it out.Instead of selling the property immediately after remodeling it, you can refinance it and lease it out to a renter. This way the monthly rent you collect will overshadow your mortgage down payments, allowing you to rake in a much higher profit than you would have otherwise.While there are many different ways in which you can flip a house, you should determine which option best suits you. Evaluate your finances, scope the current market, and land a sweet deal. Remember not to rush into things, as this may set you back financially.