Flipping houses sounds like an easy way to make money, but is it?
Flipping houses sounds like an easy way to make money, but is it? - Question on Quora.com
No, it’s definitely not as easy as the HGTV house flipping shows make it look.
The HGTV shows act like anyone can flip a house in 23 minutes by simply slapping some shiplap on a couple of walls and make a $100k profit…it’s not that simple.
Flipping houses is a business that has many challenges:
Overpaying for Deals
- Over-Estimate the After Repair Value (resale value)
- Under-Estimate Repair Costs
- Under-Estimate the Other Costs (Buying, Holding, Selling & Financing)
Unforeseen Repairs & Expensive Change Orders
- Unforeseen Foundation Issues & Structural Repairs
- Dated Electrical or Plumbing Systems
- Water Damage / Termite Damage
- Lead Paint/Asbestos/Mold Abatement
Dealing with Bad Contractors
- Contractors not pulling permits
- Unqualified contractors
- Unlicensed contractors
- Uninsured contractors
- Shoddy work and craftsmanship
- Contractors not showing up
- Construction delays
- Contractors stealing your deposit
- Unsafe working conditions or practices
- You Mismanage Your Contractors
- Bad neighbors
- Bad Public Schools
- Squatters/Existing Tenants
- Market corrections
- Dropping property values
- High inventory
- Low appraisals
- Government regulations
If you can stomach all of these challenges, then maybe you can be a house flipper?
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