If you have watched countless shows on television about pros and cons of flipping houses and making tons of money in a very short amount of time you’ve probably thought to yourself that you could do that and possibly wondered why you haven’t. If you are considering entering into the world of real estate investing through the role of one who flips houses there are a few pros and cons that you might want to carefully consider before taking the plunge.
Pros and Cons of Flipping Houses
Potential profits are large and relatively quick. Those who flip properties as a sole source of income can make in a few months what the average worker in this country makes in an entire year. The potential profits are great in this line of work for the successful house flipping team.
Being your own boss
This is within certain limits, of course, are some areas have strict zoning ordinances and code requirements that must be respected and adhered to when working on a house. Even so, you maintain a large degree of control over all the decisions having to do with the flip.
Getting to work with power tools
There is that little kid in most of us that really loves the idea of playing with power tools. In fact, that is the deciding factor for many who have gone into this particular field of real estate investing in the past.
It’s hands on. There are all kinds of different investments that you can put your money into but very few allow you to pour your heart, soul, blood, sweat, and tears into them the way that flipping a house does.
Risk Real estate is a risky business in its own right. When you add the skills that are needed in order to flip a house, the wide variety of things that may go wrong during a flip, and the volatility of the market, in general, there is so much that can go wrong when it comes to flipping a house. You must be prepared to walk away with less than nothing in order to make the high dollar profits that a successful flip can bring to the table.
No easy out. If you invest in stocks that go bad it is possible to pull your money out of that stock and go somewhere else. It is a little more difficult to do this when it comes to a house flip. You need to be prepared to see it through to the finish if you begin flipping a house.
It’s expensive to flip a house. You will need to come up with no small investment of your own in order to do this. It will take careful planning and diligent adherence to those plans in order to successfully flip a house but the rewards for your significant financial investment are most often well worth the effort.
For many first-time house flippers who are accustomed to office jobs, the aches and pains and inexperience of muscles and hands to certain jobs prove painful both physically and financially. Not everyone is as skilled as the next guy when it comes to physical labor, carpentry, painting, installing floors, hanging cabinetry, and countless other skills you will be called upon to perform while in the process of flipping a house. You will occasionally need the help of skilled professionals and on occasion need large doses of your favorite muscle ache ointment.
Despite all the pros and cons, many people around the world embark on their first house flipping adventure each and every day. The allure of quick rewards often outweighs the need for cautious prudence. But for many of these people, their efforts will pay off. Are you ready to take the plunge or have you decided that a safer difference between you and the power tools just might be the best bet? If you decide to go the distance and flip your first house I wish you the best of luck.