Remember the great migration, when COVID lockdowns made living in New York City either unbearable or unaffordable? People left in droves, searching for homes in the suburbs and countryside, and in the process drove housing prices way up. Bidding wars brought in prices that were tens of thousands of dollars higher than the listing prices, and home buyers desperate to win resorted to buying homes without stepping foot inside; some even skipped home inspections.
While the droves may have dwindled, there is still enough interest in the suburbs to make every one of us pay attention and take notes. In fact, many industry experts suggest that the migration to the suburbs could last through 2025.
While this is obviously great news for anyone who is thinking of selling their home in the suburbs or countryside, it’s also great news for anyone considering flipping homes or becoming a landlord. There are a few things to think about first.
What to Consider before Flipping a Home
TV shows do a pretty decent job of showing us what goes into flipping a home. We understand that it’s not a solo job, and that we need people we can rely on to do the needed renovation work in a timely fashion, and in a style to suit the tastes of the potential home buyer.
We also understand that the work needs to be done fairly quickly. Experts say that the most profitable projects are completed within four to six weeks. Are you prepared to focus that level of energy on the project and, if unforeseen complications arise, will you be able to handle them?
And, we understand that we need to do all of this without putting everything on the line. (This topic is best left to financial planners and mortgage experts, as there are a number of loans available for home flippers.)
What to Consider before Becoming a Landlord
Everything we just talked about for flipping a home applies here as well. Beyond that, you need to have a plan for emergencies that crop up when someone’s heat goes out or a water pipe bursts. Are you a Mr. or Ms. Fix-It, or will you have a team of pros on speed dial? You’ll also need to have a good understanding of the laws that apply to tenants and landlords, as well as bookkeeping practices, marketing, and what to do when a property is vacant.
When you are ready to build your wealth through real estate investment, Joe DeVizio’s team of award-winning realtors help you make dreams come true. We will help you find properties that are ideal to flip or rent, and we will step you through the buying process. Call 959-CALL-JOE to learn more today!