Flipping involves buying a property, holding it for a period, and selling it for a profit. The undertaking may involve a considerable amount of time and labor in making repairs or improvements. The property is usually sold within months or a year of the purchase. As with any business venture, there are risks, but it also has its benefits when properly executed.
The benefits typically include making a worthwhile profit, which according to ATTOM Data Solutions was around $62,500 for an average house-flipping during the second quarter of 2019. You also have the choice of whether house flipping is done just for side income or as a full-time job. The more you engage in it, the more money you can make. It all depends on how much time and effort you are willing to put into it.
Some who engage in flipping purchase property from individuals in financial distress, and the property may also be dilapidated. Purchasing the property helps the owner gain financial liquidity, while the one flipping the home has the opportunity to earn a decent profit as well as the satisfaction gained from restoring a piece of real estate. It can be a win-win situation for the former owner and the one flipping the house.
