Flipping houses has become a popular enough activity to warrant several TV shows about it. If you’re engaged in this activity, you should consider the market in Toledo.
Is Flipping Houses Profitable in Toledo?
The number of flipped homes in the Toledo area was 64 for the period April – June 2015. The average profit on those homes was $29,549. The average return on investment was 35.5 percent. Toledo is ranked fifth in Ohio for return on investment in house flipping.
What Makes a Flipper Successful?
Flipping houses is not as easy as some of the TV shows portray. You have to thoroughly educate yourself on the process so you know what you’re doing. Following are some characteristics successful flippers share:
They assemble a team of experts
Most people do not possess all the knowledge and expertise required to be successful. An appropriate team might include: a real estate attorney, a certified public accountant, lenders, general contractors, and a capable real estate agent (preferably one with experience working with house flippers).
They see a home’s potential
Successful flippers know how to spot a good deal. Because they’ve educated themselves on the local real estate market, financing costs, renovation costs, etc., they’re able to see the value in a home conventional buyers (and maybe other flippers) would overlook.
They know how to “do the math”
The formula for a successful flip is much more involved than: Your Selling Price – (Cost of House + Cost of Improvements) = Profit. There are a lot of other things to consider, for example, the cost of borrowed money; the cost of selling the house; the cost of insurance, utilities, and property taxes while you have possession of the house; attorney fees; unexpected expenses; taxes and commissions… well, you get the picture.
They leave their personal tastes out of the design
The design elements need to appeal to a broad group of buyers. Successful flippers know who the target buyers are and design with their tastes in mind.
Making Your Flip More Profitable
There are a number of important considerations that will make your flip more profitable. For example, you want to select a home that is below its value in the local market. The worst home in a great neighborhood will earn you more than the best home in a bad neighborhood. Speaking of neighborhoods, find a home in a good school district.
Make the home improvements that will have the most impact on increasing the home’s value. Focus on the kitchen first, and then the bathroom(s). Avoid making improvements that won’t increase the home’s value.
(We will have more on how to earn more profit from your flip in a future blog.)
Request Our Free List
Considering a house flip in Toledo? Get a Free List: Best Houses to Flip in Greater Toledo (Currently For Sale) from Craig Rush and the Rush Team! Simply request this via phone or email:
Phone: (419) 262-0321
For more information about real estate in the Greater Toledo area, including Sylvania and Perrysburg, please visit our website at www.craigarush.com.