Can you still flip? : Rooftop Views

Rooftop Views

Can you still flip?

Remember the days when you could buy a property, slap on a coat of paint and some new carpet and sell it for several thousand dollars profit all in a few weeks time?

Well, those days are pretty much over. Yes, you can still buy investment real estate and you can still fix it up and sell it for a profit. It will just take longer in today's market.

Here are some of the new ground rules:

Hold onto the property longer. Double digit appreciation is all but gone with the exception of a very few markets. You will need to hold it longer to make the profit.
Fix it up: The better it looks, the better the resale value.
Know your market: Research the city, neighborhood, etc. where you plan to make the investment purchase to see if the area is on the upswing.
Consider the area job market. If unemployment is on the rise, the number of possible buyers is shrinking.
Profile buyers. What is the amount you hope to get for the property? How does that stack up with the pool of available buyers.
Enlist the help of agents. Real estate brokers know the market inside and out. They can provide valuable insight - and maybe marketing!
Pay attention to neighborhood (a worse house in a good neighborhood is better than the best house in a bad neighborhood.)
Pay attention to appreciation. Don't plan on double digit appreciation in today's market.