3 Reasons We Aren’t Flipping Houses Right Now
We’ve flipped and renovated 13 homes in the last 6 years and this is the first year we have actively decided to take a step back from it, here’s why:
1. How values are still at an all time high
Because of this banks are capitalizing on this within the foreclosure market making it next to impossible to purchase and renovate a property in a profitable way.
2. Low Inventory
This goes back to #1 - banks are able to capitalize on higher home values because of the lack of inventory.
3. Control of the market
Home owners that are holding on to properties are performing small cosmetic updates (i.e. painting walls + cabinetry, popping in cheap flooring, and adding a few new fixtures) that have the ability to push price when in reality these updates don't add any lasting value to the home.
While it's uncertain if these circumstances are here to stay, we are just bidding our time until we feel we are in a situation to create a lasting impact with a bigger rate of return.
