Why Buy a House to Fix it up Just to Flip it?
Real estate investing has created wealth and fortunes for many individuals.
Investors have used a variety of strategies to earn fast profits and passive income from real estate.
Buy and hold is a strategy that investors have primarily used for many years to generate cash flow from rental properties. After renting a property for several years, many investors would obtain a mortgage loan to borrow some of the property’s equity and repeat the process to acquire a new rental property.
The concept of buying a house to fix it up and to market it for sale has been around for a long time. Although, investors who aim to fix and flip a property nowadays are focused on faster completion time frames.
Rather than working on a home for several years before selling it, an investor with the right financing and a solid plan could earn a profit within a few months.
From start to finish, an investor could obtain financing, complete the required repairs and sell the property in less than three to six months.
Typically, the purchase price and the property’s condition will determine how much money is needed for fix and flip financing.