I would like to ask other inspectors, contractors and anyone that is interested in the subject of flipping houses.
I am very much interested in flipping as I enjoy doing a lot of the work and it appears if you do it right there is a lot of money to be made.
I know some realtors that could help me find the right houses, I know a lot of contractors if I need them. And I happen to know a really good home inspector. ME!!!
I am in the process of the final stages of my kitchen remodel. It was a learning expierience as I did the plumbing a lot of the electrical and some of the general work.
This is my second home and I have learned a lot with both of them.
I used to rehab rental properties - still own some. But it’s been *years *since I’ve seen anything from sale in my area at prices where the numbers made sense to me - too many contractors trying to keep their crews busy off season by flippen’ houses.
Flipped 2 in the last 4 yrs. & paid off my house that way. Wife said she seen no income off of it, I said yea but no more monthly payment on our house either. Tough time & saving money
The house I am currently building has been appraised at $265,000.00 and has/is costing us 180,000 to build. We plan to live in it one year (to avoid capital gains taxes) and then sever off the 1 1/2 acres it is surveyed on to sell it. We have 54 acres to play with, with 3 one acre lots surveyed on the high-way frrontage portion. After we have done the third house, we will be mortgage free and ready to retire.
I thought once that I was retired, but turns out I was retarded.:mrgreen:
Sounds like a great idea. I thought the capital gains was two years that you had to live in the house?
Just a bit of unsolicited advice, if you are planning on severing that land, start now. It can take 1-2 years to replat a piece of property. Not saying it will, but it can.
Oh, and if you are in a certain age group, I know here in Washington you can have reduced taxes. Also, if you or spouse are disabled.
Wendy, up here the time limit on homes is 1 year. As to the severing, I have already discussed my plans with the township and the county; right now they are hungry for tax dollars, and every severance they allow brings more dollars to the pot. I am allowed to sever 2 lots, build 2 houses, then I can sever 2 more etc.
We bought our house in Meaford, On for the princely sum of $47,000.00, lived in it and worked on it for 4 years, then sold it for $126,000.00. We netted 42K on that one.
The 54 acres we are building on now, we bought for $45,000.00. Lots of trees, hills, rocks and of course, up here, the ever-present wetlands. Whilst protecting the wetlands and protecting the wildlife area’s, we can put up 7 homes if we care to. I think we’ll put up 3 and then sever off lots for our 6 daughters if they want them. The rest will be split amongst them when our terms here expire.
David,
If you can make money, then flippen well do it!
I have renovated a couple and built a couple… If you and your wife feel you can live in ahouse that is under construction (especially her) then go for it.
Actually there is no absolute set time you have to live in a house in Ontario.
As long as it is your principle mailing address. Ask your lawyer.
And make some money
Just remember the one thing with house flipping, it takes more than the 43 minutes it appears on TV. There are tons of issues that can come up that you must be prepared for.
I have done flips and have one for sale now but I use only cash. If you do not have the cash, it can get tough if you do not sell quick enough. HAVE CASH…
Run the numbers 10 times and don’t be conservative on the repairs and generous on the sale price…
Don’t be afraid to let someone else do some of the work…
Do make sure you build that someone else into your strategy for cost analysis…
Do not over “bling” a house in the wrong neighborhood…
Do not under “bling” a house in the right neighborhood…
Buy the smallest floorplan in a subdivision and make it the nicest house in there…but not with a Viking Range and SubZero fridge…make it nice and homey.
Buy without a Realtor…sell with one.
Just my experience…worked well for me for 7 years in the HOT PHOENIX market…has yet to show itself profitable in my new pathetic market.
My wife and I flip houses also, and the secret is finding houses cheap and in the right areas to re-sell (by Owner or by Realtor). We just sold one and we had it for 3months and we came out making $20,000 after fees (this was with both of us working full time jobs).This profit is mostly because we did most of the work ourselves and only did what needed to be done without spending more $$'s trying to change things too much. The 2 biggest things we spent $$'s on was that we put in a bathroom in the basement and rebuilt about 75% of the deck. It definately was stressful but was worth it. We are now on the lookout for another house.
