What is house flipping?

The concept is quite simple: find a home below market value, fix it up and sell it. Profit = Sale price – purchase price – expenses. The execution and making this a business is quite difficult. You have to be able to find properties under market value, manage contractors, make sure your cost estimates stay on track, make sure you are accounting correctly for all the costs – including “hidden” costs like title closing, finance charges, Realtor fees, taxes, insurance, etc.

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Why invest in flipping?

• Flipping is usually larger risk, but can also be larger reward in terms of percentage yield on your investment.

• It is just cool and fun to do!  House flipping has become quite popular with all the home renovation shows.  It is awesome to see the transformation!