Can You Make Money “Flipping” Homes in this Market?

Ever since the Loudoun/Northern Virginia real estate market turned in 2005, real estate investors have not really been able to make a lot of money “flipping” homes. In fact, many lost money. This is because prices were still declining and investors ended up not making a profit and even losing money on the deal.

But that has changed.

Pockets of Loudoun County and Northern Virginia have foreclosure/bank-owned properties that are selling for well below market value - even taking into consideration the amount of work necessary to rehab the property. Real estate investors are starting to buy them up, fix them and sell them for a profit - all in as little as 2 months.

Here are two real-life examples:

1) Fannie Mae owned town home - purchased for $160,000 (net) near end of 2008 - it needed about $30K worth of rehab (retail price - less if you have a “hook up” with a contractor or do the work yourself) - sold 6 months later for $242,500 (net). Taking into consideration cost of purchase and sale, you’re still clearing about $38K, an 18.6 percent return on your investment in 6 months.

2) Wells Fargo owned town home - purchased for $140,000 (net) in February 2009 - it needed about $40K worth of rehab (retail price) - sold in April 2009 for $244,800 (net). Taking into consideration cost of purchase and sale, you’re still clearing $52K, a 27 percent return on your investment in 2 months.

There are other opportunities like these out there - you just have to do your due diligence and find them. If you’re a real estate investor looking for other “flip” or rental investment opportunities such as these, I’d be happy to help. You can contact me here.