Would you buy anything right now to flip?

Question

Hey everyone,

With the current real estate market, would you even consider buying a property to flip? I’m thinking about turning a duplex into a single family in an A neighborhood. I’m just concerned about the bottom falling out or interest rates pricing potential buyers out during renovations.

I appreciate any and all responses!

Zachary Inman · Answer

There's always a risk. The best thing you can do is pick your markets well - good schools, local amenities, and job sectors. If it's an A class subdiv then it should probably have those things.

If you're buying in the right market, then prices are most likely to grow (even if it's slower than it has been in the past few years). Just don't overdo it with the renovations, position it mid-market for the neighborhood ;)

Dan Travieso · Answer

Certainly! As long as you include updated risks when working your numbers. We can expect interest rates to increase up to half a percent next quarter based on what the fed implied. Probably assume the same for the quarter after that. We know the inflation % that can be applied when estimating repairs. And be ultra conservative on re-sale price. If the numbers still work, then go for it! Even when the 2008 recession hit there were still deals to be made. Just have to work the numbers right.

Jesus Roman · Answer

Most certainly! Everything always sells.. its just a matter of running numbers correctly. You cant be looking at comps from 6 months ago anymore.. you have to be looking 1-3 months to accurately analyze your deal. Homes still sell as long as they are priced for this market and if you can adjust your deals to this market then you will still see profit.

Best of luck!

Would you buy anything right now to flip?

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