Flipping houses can be extremely lucrative when done correctly. Check out our guide to learn more about the best benefits.
Did you know that over 320,000 homes were flipped in 2021? That’s the most in a single year since 2006.
With flipping houses becoming a viable option for more and more people, that number is only going to continue growing along with the opportunities it can bring. Whether you’d like to sell your property after it’s been flipped or keep it around as rental income, there are plenty of advantages this side hustle has to offer.
Luckily, we’re here to tell you about them. Read on to learn seven of the best advantages that come with flipping houses.
1. Make it a Side Hustle
Depending on how involved you’d like to be in the home flipping process, you have the chance to make it a very lucrative side hustle. It won’t necessarily require your full attention, so you can stay at your day job and flip houses on the side to make extra income.
Some people prefer to save money by getting involved in the flipping process themselves, but you don’t have to do this to be successful.
2. No Equipment Necessary
Depending on how you choose to start this venture, you won’t have to purchase huge amounts of equipment, nor will you have to store it all.
In some cases, investors who choose to get involved in the home flipping process will have to find a place for all the equipment they now have. They’ll also have to haul to and from the work site whenever it’s needed.
If you choose to work with contractors and other teams, they’ll have all the equipment ready. So, no need to worry about anything on your part.
3. Personal Growth
Starting and building a business of any kind is never easy. You’ll likely make mistakes, experience failures, and face plenty of setbacks, but the process is a rewarding one. You have the chance to learn and build yourself up on a personal level.
Starting a business itself is an asset that most people don’t have. You have to learn about investing, taxes, business laws, and so much more. Starting a property investment business comes with even more experience, though.
You’ll gain a unique insight into the construction and real estate industries. You’ll learn all about the different processes and methods used by teams, which will help you earn more money on future projects.
On a personal level, having success in your business is an empowering experience that’s going to help you grow and build confidence. As you do this, building up will only get easier.
4. Lots of Choices
As a real estate investor, it’s up to you to scout the market and find the best property. There are a few different things you can consider:
- Location
- Financing options
- Property type
- Sale price
If you’re looking for specific things, like four bedrooms and two bathrooms, your choices might be more refined. Keeping an open mind, however, can help you find a great property in no time. No matter what, you’re a lot more likely to find great deals when you’re looking at fixer-uppers, and you can be sure there’s something out there that fits.
5. Big Profit Potential
One of the biggest benefits that come with flipping houses is the profit potential.
For a successful fix-and-flip, you can make anywhere between $40,000 and $70,000 depending on the market you’re doing business in. Another potential benefit is completing the flip in less than 90 days with a 20 percent profit margin (28 percent is reasonableto expect no matter what, though).
There are a lot of factors that play into what your results will be, so remember to keep that in mind. Typically, the more work a property requires, the bigger your profit potential becomes. However, that usually also means a longer renovation period.
6. Passive Income
Passive income is one of the biggest benefits that comes with investments. This means the money that’s continually earned on investments without any work done on your part. Usually, people think of things like stocks and bonds, but property management is also a popular stream of passive income.
Remember, though, for your property’s income to be passive, you’ll have to hire a management company to care for it and tend to other tasks, like finding tenants and taking care of maintenance along the way.
7. Add Value to Your Community
While the profit sounds nice, you can also find comfort in the fact that you’re doing right by your community.
The properties that you’ll be flipping have often sat neglected, but you’ll be transforming those properties into something that can be used and admired for years to come. You also have the opportunity to help homeowners who may be facing hardships, and you’ll be adding to your local economy.
Not only will you be adding value to homes around your area, but you’ll also be helping to employ local industry professionals like:
- Contractors
- Suppliers
- Real estate agents
- Lenders
- Attorneys
- Title Companies
- Tradesmen
Having all these people by your side when getting started is important. You can rest easy knowing that you’ll both have each other’s best interest at heart and that you both have similar end goals.
Is Flipping Houses Right for You?
The thought of flipping houses can be daunting for anyone, but it doesn’t have to be. By building a great network and having the proper resources by your side, you can get started in no time. If you do it correctly, you can take advantage of all these benefits and more.
Luckily, we can help you get started. Contact us to learn about all your financing options.