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DeLand, FL 32720

Tips For Flipping Houses

The prospect of flipping houses can be intimidating to even the most experienced real estate investors. Flipping houses is an extremely rewarding way to make money provided you get good advice on what area to buy in to and what issues to avoid.

Greene Realty has over 40 years experience in finding the right homes for buyers. We know the ins and outs of buying fixer uppers and can help guide you toward a successful house flip!

Here are 4 things to consider if you are diving into the fixer upper market.

1. Ask yourself, why has this house not been flipped yet?

We’re a far way down the road since the 2008 market crash, many homes have been bought, fixed and sold in the last 10 years. With that being said, there are a lot of experienced real estate investors and home flippers out there. So ask yourself, why has this home not been flipped yet?

Make sure that there aren’t any details you’re overlooking. Getting a professionals opinion can put you on the right path toward a wise investment.

Greene Realty can help  you decide whether your potential property is a good candidate for fixing and selling. It’s never too late to get into house flipping, there are good deals out there. Just be aware that you aren’t the only one out there and if it seems too good to be true, it might be.

2. Don’t wait too long / get pre-approved or pay cash.

Flippable real estate doesn’t hang around long at all. Most houses are put under contract within 10 days of listing. If a good deal comes on the market, chances are someone will snatch it up in a matter of days, if not hours.

It is essential that first timers get pre-approved before going on the hunt. Many a good deal could be missed while you are out checking whether your bank will provide adequate financing.

Ideally you should be attending auctions, looking for foreclosures and paying cash where possible. However not everyone has access to that type of capital, so getting pre-approved is your next best bet.

That being said, rushing into a purchase is never a good idea and we offer clients piece of mind by helping them assess the pros and cons of any property they are interested in.

3. Calculate whether it be more profitable to build new.

Building a new home can be intimidating, especially when you are looking to sell it short term. New homes offer a lot of comfort and reassurance to buyers, from modern appliances and furnishings to a new roof and AC. This security means buyers are willing to pay more per square foot.

Depending on market circumstances, new homes sometimes actually work out to be more cost-effective than existing homes on the market. Currently, DeLand listings have a median per square foot value of $137. The average cost for new home construction in the US is around $125 per square foot.

If you are able to find areas where listings are priced at high per sqft values, it could be possible to buy land, build new and sell at a higher price than the older homes listed in that area.

General data: Local areas with high per sqft prices:

Sanford – $126
Daytona Beach Metro – $129
Orlando – $135
Ormond Beach – $151

4. Realize that your profits will be taxed.

When you buy and sell houses, your profits are subject to capital gains tax. There is no easy way around this and depending on the situation, your profits could be taxed up to 30%. This alone could be enough to put you off flipping houses, but don’t get despondent just yet. Here are a few things you can do to keep capital gains tax to a minimum.

Live in the home you wish to sell.

When you sell your personal property that has been your primary residence for the past two years the profits you see are in most cases tax exempt.

Hold the property for longer than a year

Profits made from buying and selling a house in under a year can be taxed upwards of 30% depending on the property and state. Long term capital gains (over one year) are usually taxed around 15%.

Use the money from the sale to invest in more property.

Under the ‘IRC Section 1013 Exchange’ you are allowed to put the money received from the sale of your home into more real estate investments and you aren’t required to pay tax if you do so!


Contact us at info@greenerealtyflorida.com today for some advice on what signs to look out for when looking for good investment opportunities. We can show you some properties that are in the right areas with good growth potential.

Green Realty provides this information as a general guideline of what your taxes on capital gains could be. We are not tax professionals and advise you to contact one for a more accurate tax assessment.

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