Select Page

With so many television shows and real estate professionals boasting about how amazing house-flipping is, it’s hard to resist all the hype. Buying an old run-down home for cheap, fixing it up, and selling it for more does sound very appealing. However, the entire process of flipping or restoring a house can be quite complicated and can easily go wrong. On the other hand, if the flip goes well, the payout can be massive. Here are the pros and cons of house-flipping:

Pro: Gaining Experience

The beauty of house-flipping is that it is a major learning experience. Flippers will often gain a multitude of new knowledge and experiences will buying an old property to make new again. Not only will the gain an in-depth knowledge of property values and the real estate market of their area, but they will also learn how to build, restore, and other home maintenance. It is also a great opportunity to make new contacts and connections such as contractors, construction workers, and planners.

Con: Hard for the Inexperienced

Although flipping a house will certainly teach you a lot about real estate and home improvement, it can also be a difficult feat when you are inexperienced. Many first-time flippers struggle with knowing how to execute a plan for the property, who to contact for larger home improvement projects, or where to even start. Creating a new home that is worth selling takes an immense knowledge of the market and knowing what potential homebuyers want.  This type of knowledge however greatly comes from experience.

Pro: Big Payout in the End

Once you have created the home of dreams from a run-down property, it’s time to put it on the market. In the right neighborhood and with the desirable home features, a property can sell in weeks, or even better, days. With the home improvements and restoration, the payout after a flip can have you set for the rest of the year when done correctly. This is why flipping has become so popular. The payout, in the end, can be incredible. 

Con: The Loss of Money and Investment

Unfortunately, house-flipping is still a major gamble. If a property is too much of a project and requires more time to fix up, it can lead to you losing money or not breaking even. The neighborhood can be the perfect spot, but no one is looking to buy. Sometimes changing the cabinets or taking out the carpeting isn’t all that needs to be done. There can be mold, plumbing issues, or even infestation severities that can set you back thousands of dollars. Flipping a house can either lead to a massive check or mountains of debt.

Overall, house-flipping can be a great experience for real estate investors, but it must be done wisely and with caution for it to be a success.