House flipping: it’s harder than it looks

Reality of the business can be much more stressful than it seems on TV

TRD NEW YORK /
Jun.June 15, 2018 11:23 AM

(Credit: iStock)

Prospective house flippers,  be warned: the reality of the business is much tougher than it appears on reality television.

The popularity of buying properties to renovate and sell at a profit is steadily increasing,  and many people in the industry credit this to reality shows about the practice on networks like HGTV, according to the New York Times. In the New York area, flips made up 5.6 percent of sales in 2017, a 29 percent increase from 2016, and throughout the country, Americans flipped 207,000 condos or single-family homes, the highest number in 11 years.

But when people actually start doing it themselves, they can find it extremely difficult to make a sizable profit and get the house ready to sell.

Joshua Levitt and Graham Blundell, for instance, entered the house flipping market in 2015 and were able to make an $80,000 profit selling a house in South Orange, New Jersey. However, their next purchase of a four-bedroom home in nearby Bloomfield was much more challenging. Thanks to transaction fees and financing costs, they only made a $20,000 profit off of it.

“You could spend four weeks with an architect before you even get started,” Levitt said to the Times. “Then you have to pull permits, and that can take another month.” [NYT] – Eddie Small


Related Articles

arrow_forward_ios
From left: 55 East 74th Street, 9 East 82nd Street, 1 Central Park South, 78 Irving Place with Adam Neumann and 111 West 57th Street (Credit: StreetEasy, Wikipedia, Getty Images)

Adam Neumann’s triplex, Russians’ Plaza pad were priciest homes listed last week

3 East 69th Street and 252 East 57th Street 

With asking prices in freefall, luxury market sees strong week

Keller Williams CEO Gary Keller

Keller Williams will cut off agents who leave

Wall Street bonus season is the stuff home sellers’ dreams, as they picture eager buyers armed with hefty bonus checks and willing to pay top price. But in a buyer’s market that vision may be more like a mirage (Credit: iStock)

Here’s what Wall Street bonus season means for real estate this year

Adam Neumann and 78 Irving Place (Credit: Getty Images and StreetEasy)

Adam Neumann is asking $37M for Gramercy Park triplex

(Credit: iStock)

Residential rents continue upward march in Manhattan, Brooklyn and Queens

Redfin's Glenn Kelman (Credit: iStock)

“It’s on like Donkey Kong”: Redfin scrambling to keep up with iBuyer demand

Don Lemon and Tim Malone with their apartment at 2280 Frederick Douglass Boulevard 

CNN’s Don Lemon lists Harlem condo with fiancé broker Tim Malone

arrow_forward_ios
Loading...