Flip the Tables on the Flip House Phenomenon
The popularity of the flip house has waned as investors have gotten back to basics and started investing again in properties that provide a steady stream of income and the potential for appreciation down the road.
For a while, flip houses we’re easy to find and easy to fix up and sell. Then the practice hit the mainstream, in part by shows such as “Flip This House” and suddenly everyone thought they could become a real estate investor and flip houses for a living.
The competition was the first thing to put flip houses on the decline. When you’ve got 100 investors vying for a house, prices go up and suddenly what could have been a profitable investment is not one any longer. Then, the real estate market crashed along with the economy and made it hard to resell a flip house after purchasing it. The stream of buyers seen in the early to mid 2000’s simply dried up.
Today, investors that were able to survive the storm and still make their living through real estate investing are taking on a buy and hold strategy. That is, buying a property for as far below market value as possible, fixing it up, renting it out, and holding on to the property to give the market a chance to come back and the home time to appreciate.
They are typically doing this with two types of investment properties. The first is pre foreclosures. These are homes that are headed for foreclosure unless the owner takes some drastic measures and gets caught up on their payments. Investors have been able to find these deals where they are able to purchase the house for the outstanding mortgage amount and often times realize big profit from the equity already in the home. In most cases after this kind of deal happens, the investor will let the previous owner stay in the home, providing them with a ready-made tenant.
The other kind of investment property that’s hot right now are wholesale properties. These are homes being sold by other investors, and in most cases they are sold at little to no profit for the seller. The selling investor simply wants to get rid of the home so free up cash for other investments.
It is very difficult to find pre foreclosures and wholesale properties on your own. They typically aren’t widely advertised, if at all. That’s where MyHouseDeals.com comes in.
MyHouseDeals.com provides investors with the most updated and accurate list of pre foreclosures and wholesale properties in your local area. Click below to take a look around and see the homes in your area with the most profit potential.