There are many ways to get involved in real estate investment. The smartest and most easy way of entering in real estate market is flipping a house. The process of buying a house for the purpose of selling and holding it for a limited time period is called house flipping. A person flips a house when he intends to do an investment by renovating and improving it for reselling purposes.
This is becoming a most attractive way to get profit for investors nowadays. Compared to 2017, in which merely 5.7% of the total homes were flipped, 7.5% of homes were flipped in the initial quarter of 2020. In the near future, it seems that the average of flipping houses shall increase. Undoubtedly, besides this, the entire process of house flipping is too hectic. But there are some pros and cons of house flipping, ANZO Marketing makes a guide for you, read the full blog.
House Flipping: Pros and Cons
1. Decent Profit
An investor can get a great profit after every changeover. There is a 95% chance of having profit in this type of investment. Property flipping is a great venture for those who don’t have a great bank balance.
2. Complete Command
During the process of house flipping, the flipper has the full authority to control the entire procedure. Every aspect will be decided by the flipper whether it is time, budget, or effort. Which demands a great responsibility for having complete control over the entire practice.
3. A Good Career Option
A continuous effort will help you to turn this house flipping into a full-time career. In the beginning, house flipping as a side gig eventually, some people move to full-time, Moreover, job holders do it as a side gig to generate their income by doing risk-free investments.
4. Building Professional Relationship
Interaction with different professionals like estate attorneys, lenders, motivated sellers, real estate professionals, marketing companies, and many other individuals, you can build a network of professional relationships that will help you to groom faster and will have more opportunities for a great investment.
1. Unexpected Charges
Flipping can be risky in terms of financial draining when you try to do it alone. And because of having no experience, house flippers spend more money and charges which gradually turns into a disadvantage. It is really important to check out thoroughly during buying and flipping houses to avoid unforeseen expenses.
2. Legal Issues
In process of buying and selling houses, legal issues often occur. These legal issues take a lot of time for the flipper in resolving issues, and it also consumes extra money for the house flipper.
3. Maintenance effect the value
Sometimes unexpected defects appear during the maintenance and renovation of the houses. Which can be costly beyond expectation. Due to these extra expenses, the flipper will be bound to sell the flip house for higher prices.
4. Financial uncertainty
You must have the ideal team, and strategy for investing in house flipping, otherwise it can be exhausting for you. Moreover, the risk is always involved in the flipping process which could have a negative impact on your health as well as your finances.
Want to get a real estate consultancy, contact ANZO Marketing today!