#HomeLove – House Flipping
Is House Flipping Stressful?
Via: Canadian Real Estate Magazine.
“…The Main Pros and Cons Of House Flipping
Flipping houses, like any investment, has pros and cons. Before you jump head-first into flipping real estate, you need to understand the pros and cons to see if this is the right investing strategy for you…
The Pros Of Flipping Houses
Flipping properties can be a great investing strategy that helps you make a bit of extra cash on the side. Here are some of the pros of flipping houses!
It is considered a lucrative business.
The fix and flip is considered to be one of the most lucrative real estate investments. This is because, with dedication and hard work, you can make high-profit margins in a short amount of time. In 2022, the average gross profit on a flip was 40.6% in Canada.
While rental properties can make you money over a long time, flipping houses has the potential to make you a lot more money in less time. For some investors, they can make multiple flips in less than a year. This is because the goal as a house flipper is NOT tp hold onto the property for as long as possible. Rather, many investors want to make these transactions quickly, sometimes completely multiple deals back to back.
For other people who flip houses and have more spare time, they may do a lot of renovations on the property before selling it on the market instead of dealing quickly…
The Cons Of House Flipping
Even though there are many pros to flipping houses, as a real estate investor, you have to also consider the cons.
It’s time-consuming and may not work.
While some may consider flipping houses to be a fun side project, it is actually quite time-consuming and can easily become a full-time job. As a successful house flipper, you have to be involved throughout the process of repairing the home and work consistently with buyers, sellers, contractors, and real estate agents.
As much as flipping a house is a time-consuming project, you shouldn’t quit your day job, especially if you’ve just started. While it’s not the riskiest strategy out there, there’s always a possibility that it can turn into risky business and a deal doesn’t come together how you planned it. As well, there’s no guarantee that you will make a large profit right away. While risky investments often have a greater potential for a high gross profit, house flippers have to tread carefully to avoid losing money, especially if it’s borrowed money…
The Bottom Line
If you’re wondering whether you should flip a rental property or residential home, it’s important to consider the pros and cons of this investing strategy. While a fix and flip is possible even without a wealth of experience, you should understand the industry and work with professionals before jumping in.”
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