The answer is yes, if you go about it exactly the right way. You see commercials on the television all the time selling these methods to get rich quick buying and selling houses. They make it look so simple, and it is if you have the right plan in place, but not necessarily theirs. Remember, they are selling information about how to do a transaction in their area. They don’t really care if it works in every area and it doesn’t. Real estate laws vary by state. You can lose a lot of money if you don’t have the perfect plan.
In order to make money flipping houses, you need to buy low and sell high; common sense. You need to buy the worst of the worst houses, have your own crew to fix them up, get the materials at wholesale, and then have your real estate license to save the fee when buying and selling. A problem you will face is the IRS will consider you a house dealer if you buy and sell more than 2 houses in a year which means you will pay additional taxes; another dip into your possible profits.
If it were easy, then every real estate agent in town would be doing it. Are there real estate agents doing it? Yes, and they are probably making an extra $8,000-$15,000 per year, before taxes. It’s not get rich quick. Holding the property is the way to make money. Buy it in good condition, hold it for 15 years then sell it. The payoff comes in the interest deduction off your income taxes and appreciation while the tenant pays off your mortgage. Some years you may lose money in cash flow but you will still do ok on your tax deductions. If you are seriously considering buying homes to flip or for rental purposes, then do it while the interest rates are low. Just about all investors are making a positive cash flow right now on low interest mortgages. It’s the best time to buy rental homes I have witnessed in my 33 year real estate career.
If you are thinking about flipping a home in the next six months or want to learn more about the strategy of fliping property then give us a call and we will be excited to share our aggressive marketing system with you. If you are curious about the value of any home, then visit DaleRoss.com for a free market analysis. To schedule an appointment, call 24 hours a day at 281-599-6575.
Dale Ross — The Home Marketing Expert
Dale Ross Realty Group
920 South Fry Rd, Katy, TX 77450