Real estate investing offers a great opportunity for those who are willing and ready to put their money into promising homes in the area. But, before you pour your life savings into a real estate investment opportunity, it is important to evaluate the current market and determine the best strategy for maximizing your ROI (Return On Investment). House flipping can still be profitable, as long as you are smart about the investment decision.
Increasing Number of Home Flips
House flipping was popular at the height of the housing boom in 2006. Then opportunities shifted when the crash happened, causing home prices to plummet. Over the years, the real estate prices have been increasing, and many people are finding the opportunity for profit in the current market. In fact, CoreLogic shared a report that showed 10.9% of homes sold in the 4th quarter of 2018 were flips.
What qualifies a home to be a flip? These properties were purchased by the investor or homeowner and occupied for two years or less before being sold to another buyer.
Higher Profit Margins for Home Flipping
One thing you need to consider is the potential profit margin if you want to invest in a home flip. It doesn’t make sense to invest months of effort, time, and sweat equity if you are going to break even or receive a minimal return on your investment. Instead, you need to know the numbers. Buy a property that is priced right, then factor in the cost of renovations and upgrades to boost the overall value of the home.
There’s no question that the current real estate market is offering many opportunities for real estate investors. Inventory is low, which means demand is high. If you have a good home to sell, then it is likely you can connect with multiple buyers who are ready to offer on the property. Maximizing the selling price of the home means you can enjoy the benefit of higher profit margins for your investment.
Learn from an Experienced Real Estate Agent
Whether you are evaluating your options for house flipping or you are preparing to buy a new home for your family, don’t underestimate the benefits available from an experienced real estate agent. A good agent will understand the local area and have the expertise to help you identify a home that fits your needs and desires.
It is important that you choose a real estate agent you can trust. Buying a home is one of the biggest investments that you will make, which is why you need to be sure you have someone to watch out for your interests.
DUFFY Realty is leading the local real estate industry. We are working hard to maintain our reputation as the top real estate team in Atlanta. Call us to learn more about the quality real estate services that are available: (678) 318-1700