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 Location
- Bad neighbors
- Bad Public Schools
- Crime/Burglary/Break-ins
- Vandalism
- Squatters/Existing Tenants
Bad Market
- Recessions
- 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?
More Updates Coming Soon!
Checkout Our Software Road Map To See What We're Building Next
We welcome your feedback and hope to provide a collaborative experience so we can build the best house flipping & rehab project management software together.
If you have any feedback, ideas or suggestions, collaborate with our community to help us decide what we should build next.
Flipper Force Software Wish List