Is flipping profitable anymore?

By
Real Estate Agent with Sterling Realty Group LLC
Everyday on the TV an addvertizement for a new house flip show appears.  Sure prices are low, but by the time you fix up the home prices have dropped and little profit is seen.  Don't you think it is better to negotiate a realy good deal and keep it for an investment/rental for a few years?

Comments (4)

Laura Jecker
Prudential New Jersey Properties - Vernon, NJ
It depends on the home. I bought a flipper in may and it is still on the market with only 2 showings. Until the market changes I will not be flipping. I will concentrate on vacation properties where I want to vacation and lake front properties while the prices are down.
Sep 11, 2007 08:30 AM
Bill Gillhespy
16 Sunview Blvd - Fort Myers Beach, FL
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos
Hi Belle,   Actually there are many people buying new construction at discounted prices and selling them at nice profits.  Not like buying a fixer and selling after some minor repairs.
Sep 11, 2007 08:31 AM
Michele Van Detti
CJR - Gilbert, AZ
I think that question is too hard to answer from a national perspective.  It really depends on your market and your area.  If you are in an area where prices are stable, it might be good.  If you're in an area where home prices are falling faster than Britney Spears' career, it might not be such a good idea.
Sep 11, 2007 08:39 AM
Daniel Sundberg
Crystal Springs Real Estate - Kentwood, MI
Flipping is still practical at the moment, but it is only lucrative to someone who can do alot of the work themselves.  For tax purposes, and to maximize sale price, I have been advising clients to hold the property for at least one year (To make profits fall under capital gains) and to sell on a lease option.  I have a few clients who have taken this advice and made money accordingly.
Sep 11, 2007 09:03 AM