Million dollar homes are now the
favorite of the flippers
One of the most popular posts on our blog was this one on house flipping. http://blog.mortgagehelplosangeles.com/2013/04/should-you-buy-house-to-flip-flip-or.html At the time of that post, most house flips were for low end homes that were in serious distress. Moreover, the market was also weak, with few buyers.
Fast forward to 2015, and the flipping business has itself flipped. There just aren’t many low end homes on the market. The good deals are snapped up quickly by investors, cash buyers and even the individual family hoping to get the last good deal in Los Angeles.
According to an article in http://WestsideDaily.com, the action today is in homes worth $1 million and up. These homes can be dolled up with new kitchens, bathrooms, exterior paint, landscaping, copper plumbing, replacing windows, upgrading the electrical panel, and/or upgrading to central air conditioning and heat.
The huge benefit to flipping the more expensive homes is the larger profit per unit. Where the profit potential on a $300,000 home might be $50,000, the average on million dollar homes is well over $100,000. The risk, of course, is that the improved home doesn’t sell, or that the cost of the improvements prices the home to high for the current market. With all real estate investments, location and timing can undermine a great concept.
Whether you are flipping or buying a home that has been improved, you may need financing. Bill Rayman can provide you with the extensive resources of http://guaranteedrate.com/BillRayman. Call Bill to discuss your needs. His vast network of resources will help you get the results your seeking.