How difficult is it to make money by buying an old house, renovating it, and then selling it for more?

Asked by Trulia Las Vegas, Las Vegas, NV Tue May 21, 2013

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Annette Lawrence’s answer
Annette Law…, Agent, Palm Harbor, FL
Thu May 23, 2013
I saw a program on TV last night that convinced me the streets are covered with money for those who simply buy, fix and resell real estate. IT"S ON TV! It has to be true!
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The right answer to your questiong is very similar to "How easy is it to run 20 miles?"
I can do it. If you have not run 5 miles recently, it may be much more difficult, if not impossible for you to run 20 miles.
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So the question that must be asked is what is the experience, knowledge, skillset, resources and budget of the speculator? There is a gigantic mountain of money to be made, unfortuneately, most of that money is pocketed by those selling the dream, NOT THE HOUSE.

Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
727.420.4041
http://RealEstateMadeEZ.us
0 votes
Mack McCoy, Agent, Seattle, WA
Thu May 23, 2013
BEST ANSWER
Really difficult, Trulia, really difficult.

If you've never worked in construction before, then you really can't "do it yourself," you don't have professional-level skills and you're maintaining a mortgage while you learn on the job.

If you have to hire a contractor, you'll be paying retail for the skilled labor and management and a markup on materials.

Plus - in any area where the market is humming along - you're competing with construction pros for these properties, so the ones you will buy are the ones that THEY'VE figured they can't make money with!

So. It's easy to buy an old house, not so easy to renovate it, and there's no certainty that you will sell it for enough to make a profit.
0 votes
Becky Zisk, Agent, Henderson, NV
Thu May 23, 2013
You would have NO DIFFICULTIES at all....Your challenge is all up to you to do the renovation and to keep within a "Set budget." If I were you, I would consult with a realtor and get a "Sense" of the comparables in the neighborhood that have "Sold" and have been updated. This information will be your guiding light. Good luck! Becky
0 votes
Petra Reyes, Agent, Las Vegas, NV
Tue May 21, 2013
Under present market conditions is not hard to make money. A savvy investor knows how to calculate expenses of rehab, and escrow fees and still make a profit.

Regards,

Petra Reyes, Realtor®, SFR, ABR®

Realty One Group, Inc

1333 N Buffalo Dr, Suite 190
Las Vegas, NV 89128
Cell: 702-856-6356
E-fax: 702-946 5038
E-mail: RealtorinLV@gmail.com
0 votes
It is easy to make money but the question was how hard is it to flip. With homes selling for appraisal value and above it leaves little room for rehab cost, closing costs, and still make a profit. It is not impossible but it not easy either.
Flag Tue May 21, 2013
It is easy to make money but the question was how hard is it to flip. With homes selling for appraisal value and above it leaves little room for rehab cost, closing costs, and still make a profit. It is not impossible but it not easy either.
Flag Tue May 21, 2013
Rick Turley, Agent, Henderson, NV
Tue May 21, 2013
It is fairly difficult as the price difference between remodeled homes and homes in need of remodels is very close
0 votes
Robert Adams, Agent, Henderson, NV
Tue May 21, 2013
With low inventory and high demand it is hard (not impossible) to find homes for sale cheap enough to cover rehab costs, closing costs when buying, and closing costs when selling and still turn a profit. A much easier option right now in Vegas is to buy, rehab, rent for a year or so in order to save the positive cashflow for the year or so as well as the appreciation and then relist and sell.

Best Regards,
Robert Adams
Broker/Salesman
The Adams Team at
Rothwell Gornt Companies
C:702-349-9175
O:702-932-8813
F:702-932-8826
RobertAdams@LVrealestateHELP.com
http://www.LVrealestateHELP.com
0 votes
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