When the housing markets crashed as the economy went bust, perhaps nobody paid the price as high as property flippers. Property flipping, which corresponds to buying and selling a property within six months, grossed out large profits before the housing market crashed in 2011. However, the situation is steadily in the rise since 2011, and the market has never looked so good for flipping than it is at the moment.

property flipping

According to statistics by RealtyTrac, property flipping accounted for profits worth of $37,375 in 2012, and the figures will be even more favorable in the coming few months. The main reason for the rise in attraction of property flipping is the shrinking inventory and attractive house prices. A large number of houses don’t stay in the market for long, and the demand for decent well built property is at its highest now.

However, according to experts, there is a slight variation in the rules of flipping when compared to the post-recession scenario of the market. Investors looking to flip property need to rewire some of the ground rules of the trade, as the buyers are becoming more and more selective about the kind of property and newer buildings and renovations are in high demand.

A little homework on the trends and flings of the market is therefore a must have for investors looking to make greater profits with minimum risks involved. The following tips and tricks will definitely come in handy for investors who are considering property flipping in 2013. Take a look:

•    According to the experts at RealtyTrac, choice of location and area is one of the key considerations of investors hopeful for positive profits in property flipping. Market hotspots that are under the spotlight for maximum sales include regions like Chicago, Orlando, Virginia, and North Carolina etc. Orlando for example, saw a cumulative profit average of up to $75,000 on property flipping in 2012. However, the end decision lies with the investor and their personal research about the market they are looking to flip in.

•    Deal in cash as much as you can. Taking up loans tend to be more risky for the investor, and may also prolong the process. Waiting is something that is not the norm nowadays in the real estate market, and houses are literally ’flying off the market.’

•    Renovations and tweaks definitely come in handy, but try not to go too overboard. Skilled property flippers recommend spending around 25% of the total expected sale price on the upgrading and maintenance needs. Exceeding the benchmark may make the deal riskier for the investor in the long run.

•    Last but not the least; timing is the key in making the right flipping decisions with the right profits. Though there is a noticeable increase in buyers flocking to the real estate market, do not expect lightning-fast sales and instant profits. Renting out the property until you get the right buyers is often a  good idea, as it entitles you to a uniform cash inflow until you strike the golden deal for your property!

by, Paul Cook: EquityBuild News Contributor

Source: Statistics quoted from RealtyTrac