Flipping Houses In Phoenix (Gilbert: mortgage, equity, real estate)

[flipperWantaBe]

I would like to know if someone has any real numbers on the costs of flipping houses in Phoenix. I am buying a house in Phoenix to fix it in a few weeks and hoping to sell it within a couple of months. Please help. I need to have a better idea on what my budget should be. THANKS FOR YOUR INPUT!!!

[sunshinecities]

Hi,

I don't live in AZ nor can I specifically answer the question about flipping. I can tell you, from what I've heard from some on the board, the AZ newspapers, and actually talking with others who live in Phoenix - that some are having a difficult time selling their homes. Some have had to drop the prices lower than anticipated and they have sat longer than anticipated. However, my not being a real estate agent of real estate professional - who knows - perhaps the market is supposed to get better later in the year.

[nitram]

Not reccomended today. You're 2 years late. If you want to lose some money then welcome to Phoenix. There's 100,000 people vying for the 2 or 3 bargain houses that may show up once in awhile.

[sablebaby]

I would say he's more than 2 years too late. For flipping, he's 10 years too late. Sure there could be room for one more, but dang our market is NOT moving, especially for flippers. You may be sitting on the house for a LONG time.

[sablebaby]

Originally Posted by nitram

Not reccomended today. You're 2 years late. If you want to lose some money then welcome to Phoenix. There's 100,000 people vying for the 2 or 3 bargain houses that may show up once in awhile.

Oh yeah, you're right about how many people are looking for a deal to flip, but the problem is that most who get the deals are the RE agents who buy them up before they hit the market.

[nitram]

Yes, and a lot of RE agents are in cahoots with mortgage companies. It's all in who you know today to get an inside jump on the slim market.

[tiara_dc]

There should be a law against flipping houses. It's just a big ponzi scheme. Please no more flippers out here... we have enough!

[Boatdrinks]

I think that "flipping houses" has become such a chic, trendy thing to do nowadays due in large part to all the HGTV, TLC and various other channels that make it look so easy and profitable. Meanwhile, if anyone would bother to pay attention to the years these shows were filmed, many are from like 2 yrs ago and in markets that were very hot. In the more current shows, the houses don't sell right away and huge dollars aren't made.

I think the OP should go for it. Come on out, plunk down some money on a house and dump 50K more into it for renovations, plus an additional 6 or 8 months of mortgage payments while you're waiting for it to sell, then turn around and just try to compete with the builders out there with their incentives. I actually went to one development where the builder was offering 225K off specs!! The average is less, of course, but that's a good example of what you'll be competing with. Good luck!!

[ejk]

UGH, we have tons of vacant houses here which were bought by investors who no longer know what to do with them. The builder had tried to discourage it, but people apparently had big enough pockets to pay the penalties. Now almost every single one of those yards is choked with weeds (some taller than me) because the investors don't live here and frankly don't care about the neighborhood. You'd think they'd keep them cleaned up for better curb appeal, but I think a lot of them have no idea what they are doing. They just got swept up into the excitement and now they have big regrets.


In short (what? too late, you say?)...
I think the market is way too clogged at the moment.

[LVGAZ]

Originally Posted by flipperWantaBe

I would like to know if someone has any real numbers on the costs of flipping houses in Phoenix. I am buying a house in Phoenix to fix it in a few weeks and hoping to sell it within a couple of months. Please help. I need to have a better idea on what my budget should be. THANKS FOR YOUR INPUT!!!

Right, the "flipping of homes" has pretty well stopped - from a number of reasons - the cost of the homes, the amount of POTENTIAL buyers (gone are the days as we all know of the sub prime lenders- the assumable mortgages which were of huge amounts about 5-10 years ago) in Phoenix area;
Also Phoenix is no longer the sought after area that homes can be bought and resold fast - CAnadian dollar is as strong as the american - so they don't gain? CApital GAin laws have changed and you have to live in for primary residence for 2 years before given the allowance not to pay(of course there are rules for investors that imply a bit )
So I would surely look into all of this before you think you can "flip homes" here in Phoenix
We are actually leaving Arizona - and our home has been listed at market value for 5 months in Gilbert in one of the most sought over neighborhoods with beach and lake, clubhouse amentities. We all have to be patient - for the qualified to buyer to come along - the buyers before were all scrambling to get into homes, there were plenty of them - now they need to justify themselves and in the long run it is better for everyone. We are offering the 3-2-1 buy down on our home which will save the new owners in payments over 20,000 in their first 3 years and the cost to us is 3.5% of our selling price - everyone is happy and the consumer gets a great home at an affordable payment to help them get going and anticiapate raises, equity building for 3 years.