Two Alternatives to House Flipping in Today's Market
Approximately one out of every thirteen home sales (7.5%) of all residential real estate transactions were house-flips in Q2 2024 according to Attom Data Solutions, a leading real estate data provider. That's down from 7.9% a year earlier. Meanwhile, average gross profits on house flips were $76,500, which is well within a range that renovation expenses, mortgage payments, and property taxes could easily wipe out. Here are two alternatives to house flipping that you may want to consider:
BECOME A RENT-TO-OWN INVESTOR.
Some potential home buyers may be locked out of the market due to a temporary financial setback or the recent surge in interest rates. What if you could get access to these potential homebuyers, buy a home for them, and then rent it to them until they get back on their feet? That's called a rent-to-own program. Essentially, you find a tenant before you find a rental property. This way, you have zero vacancy risk. You can also set a predetermined price at which to sell them the house in a few years. This locks in your profits. Contact me for more info on putting together a deal like this!
BUY A VACATION HOME AND TURN IT INTO A RENTAL.
What if you could buy a vacation house, enjoy it for a few weeks or months, and then make money from it for the rest of the year? This strategy also gives you the ability to benefit from the expected growth in house prices during the next several years. Contact me to explore your options.
Do you have the right mortgage advisor in your corner who can help you avoid common mistakes? Contact me so we can think through your options and create a winning strategy!
Source: Momentifi