Damkw59312, Both Buyer and Seller in Castle Rock, CO

Is there a market for fixing & flipping houses in the $130K-$150K?

Asked by Damkw59312, Castle Rock, CO Sat Apr 9, 2011

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Flipping can always be tricky, so you do have to do your homework on the value of the property and the market for purchasing the property after you have completed your updates. Make sure the updates you do to the property provide some real value to the purchaser - if you just do a little paint and think that will be sufficient, that usually is not going to work. Also, watch out for a couple of things like rules by lenders that properties need to be "seasoned" - which means that the property has to be owned by the sellers for a certain period of time prior to the purchase buying it - can be 60 - 90 days or more. Also, be aware of what the purchasers may need in that home. As an example, if your typical buyer in that price range will be an FHA buyer, than the roof has to be in good shape and there can not be any evidence of decaying wood anywhere. Even if they are not an FHA buyer, it can be difficult to get a good price on home insurance with an old roof, so that can be a deal breaker. If you have any questions, or I can be of further help, please let me know.
1 vote Thank Flag Link Mon Apr 11, 2011
Yes, this is a great market for flipping if you have experience in the this field. I had Buyers that purchased two poperties in the last month alone. Both were purchased as distressed properties by the investor, one was a REO and the other was purchased at Auction. After renovations, I sold them for under the $150K target price. That appears to be the magic number in the Saint Augustine area for first time home buyers that want a nice home but the thought of going through the renovations process themselves is daunting. I can only make a suggestion for you. Work closley with a Realtor in finding the right property in a location that Buyers are active in. You pay the Realtor nothing for their time and years of experience. The Seller or Lender pays the commision so what do you have to lose. Just the vast experience of the Realtor that does this work for a living.
0 votes Thank Flag Link Sun Apr 10, 2011
My best advice is to do your homework before you buy. Are you an experienced flipper? This is not an endeavor for someone with only a learner's permit. In addition to being able to peg the renovating costs, timeframe and final sales price, you have the added issue that mortgage companies aren't generally lending to buyers who will want to purchase your "flip". Too many times, these flips are turning into flops, so be very careful.

It IS a great time to buy and hold. Again, doing your homework is critical, but there are deals all over the place that will provide positive cash flow when you buy low and rent it out. This also, in many cases, can give you good tax advantages and if you can hold the property for several years, can show you good appreciation for your efforts. I have several investors who are taking their portfolio (that is getting them about 1% or less) and buying properties for cash (realizing an 8-10% return after expenses).

If you’re looking for a good agent to help you find the right properties, give me a call.

Happy House Hunting!

Louise Warring
Coldwell Banker Residential Real Estate
0 votes Thank Flag Link Sun Apr 10, 2011
@ Gerard, why not flip in this market?
0 votes Thank Flag Link Sat Apr 9, 2011
Flipping in this market? Seriously?
0 votes Thank Flag Link Sat Apr 9, 2011
It depends on what the list price would be AFTER completed & ROI

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Sat Apr 9, 2011
Yes, there's a huge market in Saint Augustine and the surrounding areas for properties below $130K, above $150K and all points in between; this is a perfect market for flipping and flippers alike. If you would like to discuss such give me a call @ 904.417.8399 or shoot me an email @ jeanmeme@msn.com
Regards,
Jean Meme
0 votes Thank Flag Link Sat Apr 9, 2011
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