Flipping Homes: Is There Money To Still Be Made?
Flipping homes was big business when the housing market was booming but can you make money these days in a distressed housing market? The answer is yes! Despite the risks of flipping, there has been strong competition for good deals in San Diego County in the last two years.
A local San Diego research company DataQuick says a little more than one in four homes in San Diego in May had no record of a mortgage which they say is a likely sign of cash investing. If you are looking to flip a home in San Diego, expect to make about 7 to 10 percent profit in today’s market compared with 20 to 30 percent during the real estate boom. The reasons behind the profit change include lower housing prices, high rehab costs for old homes and extra fees for closing, insurance and taxes. But fear not, there is still money to be made in San Diego County!
A common mistake in flipping your home in San Diego is underestimating the cost of rehab, which can run in the tens of thousands of dollars. It is important to do your research and use professionals in the San Diego area. Also, you don’t want to overestimate a rehabbed house’s selling price.
Flipping homes also helps the local neighborhoods in San Diego. After the rehab is done, the San Diego neighborhood is going to look better and hopefully prices will go up. The rehabbed houses are sold at affordable prices to families wouldn’t otherwise be able to buy a house that has been retrofitted.