Flipping real estate for profit (San Antonio, Austin: rental, houses, landscaping)

[LongHornGuy86]

I've been watching those shows on HGTV where people buy and flip homes, by putting in modern amenities and cleaning up the yards, landscaping, and other repairs. They then sell these properties for a significant profit.

What areas of SA would be most susceptible to this type of venture? For example, I was looking at smaller properties that are quite cheap, but if everything around it looks like crap, who wants to buy a nice, refurbished home?

Who's done this before? Ideas?

[Trainwreck20]

Careful, this is a highly risky business. Your best bet is to know (or be) a real estate agent with many years of experience. I have a realtor friend who does a little bit of this in Austin (more on an oppurtunity basis than as a planned activity). Anyway, my own personal opinion of what is required:

• Have a very good idea pf property values;
• Have handy-man talent or access to cheap, good talent;
• Have time to pour time into the property to expedite the flip;
• Time to sell the house yourself.

My friend only buys a property that he knows is undervalued, usually due to neglect on the part of the current owner. Then his wife, his son, and himself try to fix everything withing a couple weeks. Painting is usually the big thing, along with flooring. Landscaping will go a long ways, too. He is very good at flooring, painting, and landscaping, and would like to be better at carpentry, but sometimes has to hire that out. After repairs, he turns and sells the house himself. Obvioulsy, he never buys a property he is listing himself, since that would be a conflict of interest.

In general, he does not buy property in the lower dollar areas. He tends to be in the moderate ($200k-275k) areas, since these will sell very quickly once refurbished. It is amazing how nice houses can be allowed to deteriorate. Of course, he does not do this for a living - it only comes out to 1 or 2 houses a year. I don't actually know the dollar amount, but he probably can clear 20k to 30k after expenses.

[irnag]

I agree with Trainwreck. This is a very risky business especially with home values deteriorating currently. I looked into it in the Indy area and talked to a few people who had done it and they didn't do it for very long, preferring the rental business over flipping.

[Steel Man]

Originally Posted by UTSASTUD

I've been watching those shows on HGTV where people buy and flip homes, by putting in modern amenities and cleaning up the yards, landscaping, and other repairs. They then sell these properties for a significant profit.

What areas of SA would be most susceptible to this type of venture? For example, I was looking at smaller properties that are quite cheap, but if everything around it looks like crap, who wants to buy a nice, refurbished home?

Who's done this before? Ideas?

If I am not mistaken, a company in San Antonio is regularly featured on one of those "flip" shows. It is either on channel 28 or 29. This would give you an indication of what area(s) they are working on.

[PrettyHateMachine]

Originally Posted by Steel Man

If I am not mistaken, a company in San Antonio is regularly featured on one of those "flip" shows. It is either on channel 28 or 29. This would give you an indication of what area(s) they are working on.

The Montolongo's, and they usually flip in lower income areas. South and West side according to them.

[slaleman]

Originally Posted by PrettyHateMachine

The Montolongo's, and they usually flip in lower income areas. South and West side according to them.

Actually, they've kind of been all over the map during the course of the show. There was one house that's on the near NW side, off Babcock Road, and the Bobwhite house is on the NE side, off Nacogdoches.

[PrettyHateMachine]

Originally Posted by slaleman

Actually, they've kind of been all over the map during the course of the show. There was one house that's on the near NW side, off Babcock Road, and the Bobwhite house is on the NE side, off Nacogdoches.

Yep. You're right. I remember that episode. The dude is a little too arrogant for my taste, but he and his brother always mention how they flip houses in neighborhoods no one else wants to.

[slaleman]

Last time I drove down that way, the house off Babcock was for rent. It's really easy to spot because they put a high wooden fence along Babcock to cut down the traffic noise.

[MichelleSG]

The SA market isn't nearly as profitable as the California market and I'd be really careful with the houses you choose. You really need to know your contrators too, they can be your biggest down fall.

[LongHornGuy86]

Interesting. What about cheap properties in the '09 area?