Flipping Houses

[Christopher Henschen]

I just had a quick question but what exactly is the Internet in flipping houses? I know there is potential for large profit but it seems like everyone is obsessed with trying to flip houses. Is every market profitable for flipping houses? Just a curious new investor. Thanks Chris

[Heather DeGeorge]

Every market is profitable for flipping houses as long as you can find a house where the numbers work! I think a lot of people become enamored with flipping because of the proliferation of shows devoted to it.  It's exciting to think of transforming something and then making money on it to boot.  I also think that a lot of those shows aren't not particularly good about showing the realities that include carrying costs, delays, etc. in ways that really drive home how much of your money is on the line and hemorrhaging out in the process... so it looks do-able with big returns.

Reality is another story.  I mean, it can be done; but you better know what you're doing.  Unless you have a construction/renovation background, have it in friends and family, and have people to lean on for help, it's not where I would start.  But that's me.

House hacking would be the optimal way to learn renovating "on the job" with less risk.  Take on a property that you can support without renters and has a livable unit and one to renovate.  Cut your teeth renovating the other unit.