While average buyers are looking into Where to Live in DC; a few have their eye on how to flip houses in DC. It's true – investing in real estate has become more exciting with the trend of flipping properties. What exactly is this and how does it work?

In short: 'flipping homes' means buying an undervalued property, renovating it, then selling it for a profit. Sounds huge? It does. A lot of people have built their business around this venture; and a few have quit their day jobs in favor for this new money-maker. It's a fact that it's one of the more lucrative real estate investments a person can make – but it's also very risky.
House Renovation
Disadvantages

It's nearly impossible to begin without capital. There are folks who claim to have done it for minimal or even no start-up cash – that is either a complete hoax, or they simply have backup. The truth is, this investment WILL require a good amount of funds plus additional savings.

It's easy to go bankrupt on this project. There's no absolute rule though: except to learn from the experts and keep your job for the meantime. Going all out on this without the right set of knowledge and skills only spells disaster. It's not only facts about how the business goes;but also information on taxes, state laws regarding the matter, and knowing the right people.

The first obstacle to tackle should you decide to ride the bandwagon is finding undervalued houses to buy. This is tricky and needs plenty of time. After that, you'll need cash to close a deal on it before others could beat you to it – so act quick! Next is rehabilitation. The house needs to be repaired, remodeled, and re-designed. Every detail of a home counts; it can be harder to renovate than to build from scratch.

Supposing it's been brought back to life, there's the issue of 'anti-flipping regulations'. The house needs to stay owned for at least three months before being sold again. Otherwise, there will be penalties and other difficulties. Since the home is going to be yours for a period of ninety days or more, you must be prepared for insurance, maintenance costs, and tax payments.

Advantages

While you might think that 'house flipping' is impossible – it's not. There are countless people who do it right, AND get to keep their jobs. Experts only warn about doing it for the trend; or worse – doing it for the wrong reasons.
Flipping House

The key is 'the right place, at the right time'. Do you think you're ready for the responsibilities this endeavor will throw at you? Like all else, it needs commitment, maturity, and wisdom. In addition: house flipping done right can actually double your income. This isn't only a great source of income, but a nice way to invest for the future.

Learn how the business works. Work hand in hand with real players in the field; and slowly work your budget towards this goal. You can start small – maybe two or three houses a year would do. Ultimately, you'll be ready for bigger fish with bigger stakes.

 


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