The art of flipping: how to buy property off-plan and sell at a profit Buying off-plan and selling fast – hopefully at a hefty profit – is becoming a staple in Nashville as its property market powers ahead. Flipping is one of the great money-making trends in a strong housing market, and involves purchasing a home in a great neighborhood for a bargain price because it’s older and un-updated… and then putting in enough labor and improvements to transform it from a diamond in the rough to a proper gem, to be sold at a heft profit. It’s a sport of risk-takers, but in a fast-moving market with a property shortage there is money to be made if you make the right call. But those wanting to flip should always take care; it’s easy for potential flippers to get burned.
With property values on the rise in Nashville, this is an excellent time to be in the real estate market. There are large numbers of distressed properties available with great potential for profit. Buying, renovating and flipping properties is a lucrative approach to real estate, as long as the investor avoids common mistakes.
Picking a House to Flip in Nashville
- Wanting to flip a condo? always check with the developer, the local codes, and your mortgage financier first. In some places you might find clauses banning flipping, while certain mortgage lenders are unlikely to help finance a flip.
- Based on the neighborhood and your projected selling price, calculate your budget for renovations before you begin the buying process. Make sure to set aside a portion of that budget for revamping expenses which surpass expectations.
- Make certain to get accurate comps on the home after renovation. Don’t assume that a 2 bed / 2 bath that’s renovated will sell for the same price as a new 3 bed / 3 bath on the same street.
- If you’re wanting to flip new construction or a downtown condo, make sure to buy long before construction is completed. Many builders offer steep deals at groundbreaking and early stages to improve their liquidity, which often leaves you with immediate equity as soon as the project is complete.
- Never make a move to purchase a property without a Plan B of what you will do if you can’t sell it by your deadline. Often, converting a non-selling property into a rental can quickly help you cover the mortgage.
- Don’t buy cheap and nondescript in the suburbs. The potential for earnings with a flip is always in high-demand locations, close to downtown and schools. And it’s still possible to find gems in great areas like Hillsboro, 12 South, Charlotte, Sylvan Park, East Nashville, Downtown, and Belmont which can be purchased within the low-200s, improved, and sold.