So you want to flip in Austin

[Dan Burstain]

If you've been paying attention to the real estate market recently it shouldn't surprise you that home flipping is back. With home prices on the rise in a large number of markets, including Austin real estate, stats are showing that just about every Tom, Dick, and Harry have been taking a stab at making some extra money by flipping homes.

According to the Wall Street Journal, the first nine months of 2016 had the highest number of investors flipping a home since 2007. The Journal also says these investors are making an average profit of around $61,000 per flip throughout the country, but of course that doesn't necessarily mean every market in the U.S. is ideal for real estate flipping at the moment.

Can I Be Successful Flipping Houses in Austin?

Aside from a few minor downturns during national recessions, Austin homes for sale have steadily increased in value since the 1980s, proving that buying real estate in the area is a good investment. Furthermore, demand for Austin real estate is so high at the moment that there's a good chance you can make a great profit, regardless of the price you pay to purchase the home initially.

There's also a new reality TV show specifically about flipping houses in Austin, called Flipping Austin, which is a good sign that flipping houses in Austin can be a lucrative entrepreneurial venture. Seeing homes flipped in your neighborhood can also be a great source of inspiration to get in on the home flipping action!

So the demand is there and the Austin real estate market is steady enough to make a good profit if you decide to try your hand at home flipping. However, being successful at flipping Austin homes may depend on what type of home you want to flip and your ability to attract investors.

Buying and Quickly Flipping

With the demand for Austin real estate being so high and inventory levels being comparatively low, buyers will likely be lining up for the home you're trying to flip. You may be able to make a quick resale with only minor upgrades to the house. Quick and easy renovations can be enough to bump up your home's value without too many construction or design costs cutting into your profit margin.

You should also keep in mind that a hot seller's market means less financial risk for house flippers given the lower likelihood of being unable to resell the home.

Foreclosures

With the ability to buy low and potentially make a big profit upon reselling, foreclosures are the types of homes that are enticing to many real estate flippers.

Since the Austin real estate market is extremely hot, finding a foreclosed home to flip may be tough, but it can be done. With fierce competition for these distressed properties, it's important that you find a good real estate agent who specializes in this type of purchase to help ensure you jump on a good deal before someone else beats you to it.

Flipping Real Estate Without A Lot Of Money

A common misconception among those looking to get into the home-flipping business isYeah that you need a lot of money to begin with. This is not necessarily true if you can network and find the right investment partner(s). Maybe you can join a local chamber of commerce or perhaps it's as easy as just talking to a co-worker or relative who knows someone with a history of real estate investment.

You'll need to research the right home and do the legwork when it comes to sprucing it up, but if you do the work your investor(s) will hopefully supply the money. This could come in handy if you want to make a cash offer on a home, which will likely give you the inside track on a purchase in the hot Austin real estate market.