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kennytheb, Other/Just Looking in Elk Grove Orchards,...

What does flipping houses mean?

Asked by kennytheb, Elk Grove Orchards, Elk Grove, CA Mon Oct 22, 2012

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Although this is an older thread I believe this is important to address. Contrary to what was been written on this site, Flip Properties (meaning a home that was purchased and resold where the new owner has owned it less than 90 days) can be financed less than 90 days and here is the info:

1.) Conventional Financing- No Flip Rule Applies
2.) VA Loan- No Flip Rule Applies
3.) FHA- If less than 90 days and the new sale price exceeds 120% of the previous acquisition, a second appraisal and sometimes a Home Inspection will be required by the lender and the Buyer CAN'T pay for it.
4.) USDA- No Flip Rule Applies
Web Reference: http://www.AFN-Loans.com
0 votes Thank Flag Link Sun Mar 10, 2013
Flipping houses means.....Buying a home, fixing it up and selling it for more to make a profit
0 votes Thank Flag Link Sun Mar 10, 2013
Flipping a house means an investor is buying it to turn around to sell it immediately. Usually there are renovations or other issues resolved and improved upon to make the property more marketable.
0 votes Thank Flag Link Sun Oct 28, 2012
House flipping is, essentially, buying a house or property with the intent to sell it for a profit. There are a lot of details that must be considered before making the purchase; where to purchase, how much work is needed on the property (if any), the determination that property values will increase in a certain area or the repairs you make on a property will and can be completed leaving enough margin for profit. A lot of work and research is required to be successful in flipping homes.
0 votes Thank Flag Link Tue Oct 23, 2012
Quite simply, flipping houses means that someone buys a property, fixes it ups and re-sells it in a relatively short period of time for a profit. This stands apart from a buy and hold strategy where the home is lived in or rented out.

Investors have been actively buying distressed properties throughout California, sprucing them up and flipping them for profit.
0 votes Thank Flag Link Tue Oct 23, 2012
Elizabeth is correct. In addition, there are other factors to consider if you are looking at buying a flip home. The home is assumed to be remodeled and this is most often the case. However, there are others who do a cosmetic fix up and leave other things undone. Which is why, in all cases in California, we strongly recommend that you have a home inspection even though it looks so nice with the fresh paint, carpet and granite counters.

If you plan to get an FHA loan, they also have restrictions in buying a flip home. They may require that the offer be made 90 days after the home was purchased by the flipper and have you pay for two appraisals to substantiate the value. In addition the flipper may need to demonstrate that the 'profit' they are receiving is within a 'reasonable' range after costs.

Your buyer's agent can help you if you want to make an offer on a flipped home.
0 votes Thank Flag Link Tue Oct 23, 2012
It refers to somone buying a property, then typically fixing it up / renovating it, and selling it hopefully for a profit - all within a fairly short period of time. There are a couple of shows on the home channels that show people doing this - either as first-timers or as a business.
0 votes Thank Flag Link Mon Oct 22, 2012
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