Does anyone here flip houses?

RayH · Jun 4, 2006

Our situation is that I drive trucks for a living but am jobless at the moment so Ive got some flexibility as far as working part time or full time. Im having trouble commiting to take a job because I am really sick of working for others. I would, ideally, like to continue driving part time to keep my experience and license current as something to fall back on though. My wife has a good job and carries benefits. Our vehicles and house are paid off. I do owe about $1500 on my tractor /forums/images/graemlins/smile.gif. I took it at 0% just to keep good credit if needed but could pay it off anytime. We have no kids and a decent nest saved.
It sounds like an ideal situation but I have second thoughts because Ive tried doing my own thing a couple times in the past and it hasnt worked out real well, I kinda let my wife and myself down. Both my wife and I really hate oweing money. By no means are we hurting for money but we would have to take loans to flip. Ive got the knowhow and tools to do minor fixing but would need to hire out major stuff. We both have a decent feel for the real estate market, actually I was an agent a few years back, (one of my failed attempts at being free from the man). She has also taken the real estate course but never tested to get her license.
Any advice or words of wisdom from those who flip or even those who have gone out on their own?

RayH · Jun 4, 2006

Our situation is that I drive trucks for a living but am jobless at the moment so Ive got some flexibility as far as working part time or full time. Im having trouble commiting to take a job because I am really sick of working for others. I would, ideally, like to continue driving part time to keep my experience and license current as something to fall back on though. My wife has a good job and carries benefits. Our vehicles and house are paid off. I do owe about $1500 on my tractor /forums/images/graemlins/smile.gif. I took it at 0% just to keep good credit if needed but could pay it off anytime. We have no kids and a decent nest saved.
It sounds like an ideal situation but I have second thoughts because Ive tried doing my own thing a couple times in the past and it hasnt worked out real well, I kinda let my wife and myself down. Both my wife and I really hate oweing money. By no means are we hurting for money but we would have to take loans to flip. Ive got the knowhow and tools to do minor fixing but would need to hire out major stuff. We both have a decent feel for the real estate market, actually I was an agent a few years back, (one of my failed attempts at being free from the man). She has also taken the real estate course but never tested to get her license.
Any advice or words of wisdom from those who flip or even those who have gone out on their own?

automech · Jun 4, 2006

Does the market feel a little tight right now? It does to me. If the Fed raises the rates much more its going to get ugly.

automech · Jun 4, 2006

Does the market feel a little tight right now? It does to me. If the Fed raises the rates much more its going to get ugly.

RayH · Jun 4, 2006

( Does the market feel a little tight right now? It does to me. If the Fed raises the rates much more its going to get ugly. )

Its getting tight. If the rates go up all that will happen is the prices of housing will fall off. Im pretty sure I missed the golden years in this area. Five years ago I could've bought a house and flipped it four months later, without putting anything into it, and made a good profit. There are places an hour or so from here where housing is much cheaper but will still continue growing slowly. If I need to, I will drive a little to buy right. Its shifting from a sellers market to a buyers market. Thats something I will have to keep in mind and account for.

RayH · Jun 4, 2006

( Does the market feel a little tight right now? It does to me. If the Fed raises the rates much more its going to get ugly. )

Its getting tight. If the rates go up all that will happen is the prices of housing will fall off. Im pretty sure I missed the golden years in this area. Five years ago I could've bought a house and flipped it four months later, without putting anything into it, and made a good profit. There are places an hour or so from here where housing is much cheaper but will still continue growing slowly. If I need to, I will drive a little to buy right. Its shifting from a sellers market to a buyers market. Thats something I will have to keep in mind and account for.

CurlyDave · Jun 5, 2006

Its shifting from a sellers market to a buyers market. Thats something I will have to keep in mind and account for.

Until it hits bottom and starts back up, you can lose your shirt.

I am repositioning (1031 exchanges into retirement communities) but not adding any money until the market direction becomes clear.

I am not really a house flipper, more buy a fixer-upper, improve it and rent it out for the long term. I know I have left money on the table over the past few years, but I have done well slowly, and have never lost money on a house.

The problem with flipping is that you never know when the music is going to stop, but sooner or later flippers are going to get left holding the bag. If you are doing it on borrowed money, you can lose your shirt in no time flat.

Any advice or words of wisdom from those who flip or even those who have gone out on their own?

I am going out on my own next year, but right now make more from real estate than from my day job...

CurlyDave · Jun 5, 2006

Its shifting from a sellers market to a buyers market. Thats something I will have to keep in mind and account for.

Until it hits bottom and starts back up, you can lose your shirt.

I am repositioning (1031 exchanges into retirement communities) but not adding any money until the market direction becomes clear.

I am not really a house flipper, more buy a fixer-upper, improve it and rent it out for the long term. I know I have left money on the table over the past few years, but I have done well slowly, and have never lost money on a house.

The problem with flipping is that you never know when the music is going to stop, but sooner or later flippers are going to get left holding the bag. If you are doing it on borrowed money, you can lose your shirt in no time flat.

Any advice or words of wisdom from those who flip or even those who have gone out on their own?

I am going out on my own next year, but right now make more from real estate than from my day job...

ultrarunner · Jun 5, 2006

Having done both... To me, flipping houses is like playing the stock market with a lot more overhead and built in costs.

On the other hand, I think you can make good investments in any market if you concentrate on "Bread and Butter" homes in stable neighborhoods by buying homes that are cosmetic fixers with a fallback and hold position to ride out a down market by renting it.

In buying and selling Real Estate with borrowed money to flip, you need to make up all of your closing costs, brokerage fees, repairs and holding cost over a short time before you have the opportunity for profit.

ultrarunner · Jun 5, 2006

Having done both... To me, flipping houses is like playing the stock market with a lot more overhead and built in costs.

On the other hand, I think you can make good investments in any market if you concentrate on "Bread and Butter" homes in stable neighborhoods by buying homes that are cosmetic fixers with a fallback and hold position to ride out a down market by renting it.

In buying and selling Real Estate with borrowed money to flip, you need to make up all of your closing costs, brokerage fees, repairs and holding cost over a short time before you have the opportunity for profit.