You buy a home, fix it up, then sell it for a higher price. The trend of house flipping is growing in Albuquerque as well as the rest of the nation. In fact, over 207,000 single family homes and condos were flipped last year nationwide, the most since 2006.
Yet don’t be fooled by what marketers tell you and what you see on TV. Flipping a home is not quite so easy. But flipping a home in Albuquerque can be worth the effort if you protect yourself.
Is flipping a home the right decision for you? Here’s a few ways you can avoid the pitfalls:
Be careful where you take advice.
As home prices continue to rise, it’s easier to make a profit when you flip a home. But when prices fall, it’s not so easy. Try to get advice from home flippers who have been through several market cycles and know how to handle the changes.
Keep an eye on the Albuquerque real estate market.
If there are more homes on the market in Albuquerque, or if they are on the market longer, be aware. When this happens, it could take more time to sell your house, and you may not sell for as high a price as you anticipated.
Avoid short term loans.
Flippers tend to go with short-term loans, but they can actually be more costly as interest rates rise. This will obviously eat into your profits.
Don’t cut corners.
Permits are a necessary part of remodeling a home, so don’t try to get around them. You could be held liable for damages or have to redo work that was done without the proper permits.
Make the Time.
Your time is an important commodity to take into account when flipping a home. If you have a full-time job on top of it, you have to make sure you have the time and energy to devote to the renovation. If you don’t have the time, make sure you find someone to partner with who has the time and experience. After taking an honest look at your time, you may discover that flipping a home is not the right move for you.
Flipping a home in Albuquerque can be a rewarding adventure and a great way to make money if you do it right.
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