Home flipping makes a comeback among younger demographic
Posted on Thursday, February 6, 2014 at 9:12:45 AM
Home flipping - or the process of buying a cheap home, making quick repairs and selling for a profit - has been a profession closely tied to the up-and-down fluctuations of the real estate market. In fact, many buyers interested in residential financing may also be looking to get into this segment, and thankfully the market for flipped homes is on the rise.
According to RealtyTrac, the millennial demographic, including those between the ages of 25 to 34, has been traditionally reluctant to buy homes. However, that appears to be changing, and a number of these adults have been interested in flipped homes in some regions across the U.S.
For example, the average flip purchase price in Fairfax, Va., was $456,000, leading to an average gross profit of $210,200, RealtyTrac reported. Other flipping hotspots included Seattle, Rockville, Md., and Concord, Calif.
Even so, home flipping may not be as easy as it sounds. According to Bankrate.com, the hardest part is acquiring the money, including residential financing. Buyers who don't have a large amount of funds at their disposal to afford repairs and upgrades won't be able to reap the rewards at the end of the day. Overall, the quicker the property is sold, the less money the flipper has to spend.