If you are new to investing in real estate, purchasing a fix and flip property can be a great way to get started. For those unfamiliar, fix and flip properties tend to refer to real estate purchases that are bought at a low price — often because they need substantial repair or upkeep — and are then fixed up and sold at a profit. Such properties can often be cheap to buy and reasonably invest in and make a decent return.
Of course, making a substantial investment can always be daunting. If you are on the fence, read on to learn about the benefits of investing in a fix-and-flip property.
An Easy Way To Get Started
These types of properties can provide a convenient means for getting started in real estate. As noted, they can often be purchased at a reasonable price. If you have some contracting skills, you may be able to do some of the repair or other work on your own; if not, there are always experienced contractors you can hire to assist you.
In short, purchasing a “fixer-upper” can be a good way for a new real estate investor to learn about the business.
A Place To Stay
Some contractors who invest in properties for flipping may frequently be on the move, trying to get work done quickly as they turn over a new property. If this describes you, it’s useful to remember that fixer-uppers provide another benefit: a place to stay while you get the work done. For a potentially inexpensive investment, you can have a roof over your head while you turn around a property.
In some cases, this can be extended into the future. For instance, fixing up a two-family home, or converting a single-family home to a two-family home, can provide a stable place to live into the future and an ongoing source of income.
Finally, while not all fixer-upper properties are affordable, many can be purchased reasonably for limited upfront investments. For this reason, they can be a good way to invest if you do not have a ton of cash on hand. Be sure to consider factors like location and property damage severity to ensure your investment is sustainable.
Fixing and flipping properties is a time-honored way to make money in real estate; the tips above can help you do it yourself.