09 Jun Fixing and flipping real estate in a hot market
Might 2017 be a good time to buy residential real estate that can be fixed and flipped? It’s a tricky time, of course, because home prices are rising as supply shrinks, but for the shrewd buyer, there still may be opportunities.
An economist for the National Association of Realtors expects prices will rise 5 percent this year, and the cost of buying is rising faster than new homes are being built. Mortgage rates rose earlier in the year, which prompted many buyers to get busy looking for a new home before interest rates rise any further.
All the factors giving you more competition for houses also make it a great time to buy, fix and flip homes. Houses are selling faster than they have in years! Redfin, a real estate brokerage firm, says the typical home is now under contract within 40 days, 10 days faster than last year.
Millennials are among the buyers now fueling the market because many of them delayed buying when the economy was slow, or bought and now want to move up. And don’t neglect to consider the rental market: Rental properties often have a very good ROI, perhaps 30 to 40 percent
If you decide a real estate investment may be in your future, contact us to discuss any legal considerations. Barsh & Cohen is a full-service real estate law firm and title company that can help with any mortgage closing services you need. We evaluate your needs on a case-by-case basis and make sure you have proper legal representation.