Thursday, December 22, 2016

Should People in Phoenix Want to Flip Houses? Yes!

Phoenix Want to Flip Houses
Phoenix Want to Flip Houses
House flipping is when a person buys a home, typically at a discount, and then resells it at a profit within the next year. Can money be made? Yes. Can a lot of money be made? Yes. Just be sure to keep the risks in mind.

Phoenix is a great place to get started. According to Bankrate, an authority on markets and finance, Phoenix went from one of the worst housing markets to one of the best in less than a decade.

Phoenix Valley ended up at No. 2 on Bankrate’s list of the top U.S. cities for homeowners.

Bankrate used several indicators, including appreciation and property tax costs, to come to their conclusion. Both of these variables are important when considering flipping a home, and because of this, people in Phoenix want to flip houses.

In addition to some of the lowest property taxes in the area, Metro Phoenix has been experiencing higher than average increases in home values.

While the market is perfect for flipping, keeping in mind a few basic tips is crucial to success. The first thing to remember is that choosing to invest in real estate is an expensive journey. The first expense is the cost of purchasing the property. While low/no money down financing can be found everywhere, legitimate vendors that can be trusted are rare.
Phoenix Want to Flip Houses
Phoenix Want to Flip Houses

Additionally, if you're taking out a loan to pay for the property, that means you are paying interest. Everything spent on interest contributes to the total you will need to earn on the sale to break even.

As you might think, the more debt you have the higher your risk is. The best way is to only buy flip homes for cash. No mortgages. No equity lines. If you do not have the money to take these deals by yourself with cash, find a silent partner with the cash and split the profits.

So all in all, should people in Phoenix want to flip houses? The answer is yes, but if you are new to flipping and do not have knowledge about the process, you could lose a lot of money more easily than you can imagine. If you dive in head first without the right team or foundation, you could wind up bankrupt. Don’t do this. Find some help – there are lots of great sources of information to get going. A source within the community is Matrix Real Estate Investor Network. Regardless of where you get your knowledge, make sure you have it before risking your own financial safety.

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