House flipping is a complicated but potentially profitable endeavor. However, the complicated nature of flipping also makes it potentially very risky. A house can quickly lose you money due to unforeseen issues. Even so, the house market is extremely busy at the moment. It can be a lot of fun to remodel a house using things such as custom cabinet installation. In this video, you will learn if now is a good time to start house flipping.
In this episode of the Ramsey Show, a man calls in to ask about if it is a good time to start flipping houses for profit. He is debt-free and has $104,000 in capital to invest. He was already working as a contractor and would be able to do much of the repairs himself. Yet, he will have to compare the risk of this investment and his opportunity cost with the potential profits of flipping.
Any time can be a good time for house flipping. However, this time rarely comes around. In other words, patience is important in house flipping. You may have to pass on 200 houses before finding the right one to flip. Ideally, the deal should be so good that you get the house at around 72% of the appraisal value. It is also crucial to have all the inspections done to reduce the odds of unforeseen expenses which can ruin a project.