There are a number of shows on television centered around flipping houses. Maybe the appeal is that we have dreams of one day being capable of complicated DIY projects, making our own homes more valuable, or we just love watching something less attractive become beautiful. What’s really happening on these shows is people are making money and often, a lot of it. The thing about house flips is that pretty much anyone can do them — even rapper turned real estate investor Rob Van Winkle (affectionately known as “Vanilla Ice”) has gotten in on the action.
House flipping refers to the process of buying a home, making major repairs and renovations, and then selling the house for a profit. This often results in short term capital gains for the house flipper, and possibly even tax benefits. This can be especially lucrative in the low income housing market, where homes can be bought relatively inexpensively.
If you’re thinking about investing in real estate by flipping houses, you really need to do your homework about how to start flipping houses. Of course you’ll need plenty of flipping houses tips, like where to get good deals on supplies and what the best and easiest improvements are, but you’ll also need a solid house flipping business plan to make sure that you’re doing things right and that you’ll have the best chance of making a profit.
The most important flipping houses tips have to do with the process and things you need to know surrounding it. There are a number of tax related issues that can arise, and laws regarding the sale of houses, as well as building and zoning codes that you’ll need to pay attention to before you start actually flipping.