Corsicana Daily Sun, Corsicana, Texas

Community News Network

January 22, 2013

House 'flipping' is back

Even in this market, investors are making money on real estate

(Continued)

"Because it’s so much tougher to qualify for a mortgage than it was during the height of the housing boom, many investors prefer to skip all of the red tape and pay with cash," Paffrath said. "That way, they can make purchases a lot faster than they would if they had to go through the traditional lender process."

There are some disadvantages to paying cash. It ties up all your capital, limiting the number of "flips" you can do. But that might turn out to be an advantage, keeping investors from getting over-extended, which happened a lot during the bubble days.

And even though investors are limited to what they can buy with their own money, the post-crash market has offered up lots of bargains in the form of foreclosures and short-sales, so their are plenty of properties in their price range.

Fine, so investors can buy homes, fix them up and put them back on the market. But we've been in a housing recession for a while. Will anyone buy them? Paffrath says they will but you have to pick your markets.

Rising from the ashes

"Right now, Phoenix seems to be the most popular place for flipping," he said. "At the end of 2012, more than one-quarter of buyers in Phoenix were investors, most of whom were from out of state. Because home values are rising so quickly, flippers don’t even have to make any upgrades to the homes. All they have to do is hold onto the property for a few months and let natural area price increases work their magic."

How much can they make? Paffrath says home values in Phoenix are rising about two percent per month. Put a little sweat equity into giving the place some curb appeal and investors can reap a nice return.

Text Only
Community News Network
AP Video
Judge Ponders Overturning Colo. Gay Marriage Ban Airlines Halt Travel to Israel Amid Violence NYPD Chief Calls for 'use of Force' Retraining VA Nominee McDonald Goes Before Congress Bush: Don't Worry, Sugarland Isn't Breaking Up US Official: Most Migrant Children to Be Removed Police Probing Brooklyn Bridge Flag Switch CDC Head Concerned About a Post-antibiotic Era Raw: First Lady Says `Drink Up' More Water Courts Conflicted Over Healthcare Law Holder Urges Bipartisanship on Immigration Raw: Truck, Train Crash Leads to Fireball US Airlines Cancel Israel Flights Obama Signs Workforce Training Law Crash Victims' Remains Reach Ukraine-held City Diplomatic Push Intensifies to End War in Gaza Cat Fans Lap Up Feline Film Festival Michigan Plant's Goal: Flower and Die Veteran Creates Job During High Unemployment
House Ads
Twitter Updates
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide