Comments on: Flipping Houses for Profit http://www.milliondollarjourney.com/flipping-houses-for-profit.htm Building Wealth through Saving and Investing Tue, 09 Mar 2010 20:36:22 -0500 http://wordpress.org/?v=abc hourly 1 By: Ryan http://www.milliondollarjourney.com/flipping-houses-for-profit.htm/comment-page-1#comment-108536 Ryan Tue, 15 Dec 2009 17:07:51 +0000 http://www.milliondollarjourney.com/?p=978#comment-108536 My wife and I bought our house in Toronto on spring 2006, not at all intending to flip it. I have always been reasonably handy, so we opted for a home we thought we could improve upon over time. We estimated that we would be in this house at least 5 years. Over the following two years, we were constantly under construction it seemed... big deck in the yard, opened up walls, refinished floors, torn out carpet on stairs and refinished, finished basement, moved around laundry facilites, replaced all baseboards and door and window casings, landscaping, painted and decorated, etc, etc, etc. This list certainly kept me busy for a long time, as the only thing I didn't do myself was the refinishing the floors... In the end, when we decided to move our of Toronto, we put scrambled to finish everything on time to put the house on the market after exactly 2 years. The house sold in 4 hours, for about 105K more than our initial purchase price. A nice little profit, but here are my final thoughts... Pros - profits sense of accomplishment I enjoyed doing most of the work, but stress to get things finished got to me in the end. Cons - living ina construction zone with a new born baby... leaving the house after having done all that work... In the end, we bought a lovely house out of town, and I havent picked up a tool since. although I am starting to jones for a project of some sort, I think i will pick up a rental that I can do alittle work on... My wife and I bought our house in Toronto on spring 2006, not at all intending to flip it. I have always been reasonably handy, so we opted for a home we thought we could improve upon over time. We estimated that we would be in this house at least 5 years. Over the following two years, we were constantly under construction it seemed…
big deck in the yard, opened up walls, refinished floors, torn out carpet on stairs and refinished, finished basement, moved around laundry facilites, replaced all baseboards and door and window casings, landscaping, painted and decorated, etc, etc, etc. This list certainly kept me busy for a long time, as the only thing I didn’t do myself was the refinishing the floors…

In the end, when we decided to move our of Toronto, we put scrambled to finish everything on time to put the house on the market after exactly 2 years. The house sold in 4 hours, for about 105K more than our initial purchase price. A nice little profit, but here are my final thoughts…

Pros -
profits
sense of accomplishment
I enjoyed doing most of the work, but stress to get things finished got to me in the end.

Cons –
living ina construction zone with a new born baby…
leaving the house after having done all that work…

In the end, we bought a lovely house out of town, and I havent picked up a tool since. although I am starting to jones for a project of some sort, I think i will pick up a rental that I can do alittle work on…

]]> By: Flipping Houses http://www.milliondollarjourney.com/flipping-houses-for-profit.htm/comment-page-1#comment-107782 Flipping Houses Wed, 02 Dec 2009 06:11:04 +0000 http://www.milliondollarjourney.com/?p=978#comment-107782 If you really want the best deals in investment properties, you have to increase your odds by finding more deals. Who is more likely to get a cheap apartment building, an investor that looks through the MLS listings and calls it a day, or the one that uses ten resources? If you really want the best deals in investment properties, you have to increase your odds by finding more deals. Who is more likely to get a cheap apartment building, an investor that looks through the MLS listings and calls it a day, or the one that uses ten resources?

]]> By: Canada Deals http://www.milliondollarjourney.com/flipping-houses-for-profit.htm/comment-page-1#comment-105550 Canada Deals Tue, 29 Sep 2009 04:41:03 +0000 http://www.milliondollarjourney.com/?p=978#comment-105550 The more I read through the posts on this blog the more I wish I would have found it eons ago :) We tried the "flip a house" thing 2 years ago in the booming Edmonton market. It was the most work I've EVER done in my life, *and* we must have done it all wrong because the profit wasn't what we expected. I think the market was just to volatile at the time. We didn't lose money but it wasn't pie in the sky like we'd heard it would be. Property flippers... I tip my hat to you. The more I read through the posts on this blog the more I wish I would have found it eons ago :)

We tried the “flip a house” thing 2 years ago in the booming Edmonton market. It was the most work I’ve EVER done in my life, *and* we must have done it all wrong because the profit wasn’t what we expected. I think the market was just to volatile at the time. We didn’t lose money but it wasn’t pie in the sky like we’d heard it would be.

Property flippers… I tip my hat to you.

]]> By: Jeff Logue http://www.milliondollarjourney.com/flipping-houses-for-profit.htm/comment-page-1#comment-105473 Jeff Logue Fri, 25 Sep 2009 19:03:08 +0000 http://www.milliondollarjourney.com/?p=978#comment-105473 Great article. One extremely useful and powerful tool that flippers can use (and that I use for my business) for finding comparables is Realquest. Though you have to pay a monthly fee, this will give you the most up-to-date data pulled straight from the county records. You can track everything from the after repair value to the square footage of a property. This is especially helpful if you plan on flipping houses outside of your local area as well. Great article. One extremely useful and powerful tool that flippers can use (and that I use for my business) for finding comparables is Realquest. Though you have to pay a monthly fee, this will give you the most up-to-date data pulled straight from the county records. You can track everything from the after repair value to the square footage of a property. This is especially helpful if you plan on flipping houses outside of your local area as well.

]]> By: Flipping homes http://www.milliondollarjourney.com/flipping-houses-for-profit.htm/comment-page-1#comment-105268 Flipping homes Fri, 18 Sep 2009 08:29:28 +0000 http://www.milliondollarjourney.com/?p=978#comment-105268 In virtually every single property you flip, you will run across SOMETHING that you simply didn’t expect. Whether it’s an issue that pops up 2 hours before closing that needs to be handled or a big surprise when you peek behind the drywall that you had to replace! You’ll almost always run at least a little over budget or hold it a little longer than you anticipated. In virtually every single property you flip, you will run across SOMETHING that you simply didn’t expect. Whether it’s an issue that pops up 2 hours before closing that needs to be handled or a big surprise when you peek behind the drywall that you had to replace! You’ll almost always run at least a little over budget or hold it a little longer than you anticipated.

]]> By: aRRow http://www.milliondollarjourney.com/flipping-houses-for-profit.htm/comment-page-1#comment-105246 aRRow Thu, 17 Sep 2009 13:01:36 +0000 http://www.milliondollarjourney.com/?p=978#comment-105246 Hello, What's the best mortgage, out there, for the flipping business? Put down 5% Have a brake on payment, like escaping 1 or 2 payments a year Thank you Hello,
What’s the best mortgage, out there, for the flipping business?
Put down 5%
Have a brake on payment, like escaping 1 or 2 payments a year
Thank you

]]> By: Tobey http://www.milliondollarjourney.com/flipping-houses-for-profit.htm/comment-page-1#comment-104664 Tobey Tue, 08 Sep 2009 01:43:30 +0000 http://www.milliondollarjourney.com/?p=978#comment-104664 Becareful about the canadian taxation of flipping ... it could be considered a venture in business with a view to profit .. any profit would be taxed 100% and if there was a loss .. well good luck saying how it should be 100% deductible if anything it would be a capital loss deductible at 50% against other cap gains ... Luckily I don't know if CRA has caught on to auditing this type of business activity to get more tax revenues but who knows in the future .. all land transfers have to be registered ... Becareful about the canadian taxation of flipping … it could be considered a venture in business with a view to profit .. any profit would be taxed 100% and if there was a loss .. well good luck saying how it should be 100% deductible if anything it would be a capital loss deductible at 50% against other cap gains …

Luckily I don’t know if CRA has caught on to auditing this type of business activity to get more tax revenues but who knows in the future .. all land transfers have to be registered …

]]> By: mattyfu http://www.milliondollarjourney.com/flipping-houses-for-profit.htm/comment-page-1#comment-104466 mattyfu Mon, 07 Sep 2009 03:46:16 +0000 http://www.milliondollarjourney.com/?p=978#comment-104466 I'd really like to hear some experiences from a 1 a year live in home flipper, it seems like the least risky way of doing it, worst case scenario your paying down the mortgage until the market will pay what you feel it's worth. Obviously not practical for a lot of people (families) but I'm sure there are plenty out there doing this. I'd also like to hear more about cabin/lake lot real estate investing because around here (Alberta) it seems the price difference between a empty lake lot and a lot with a cabin on it leaves room for some decent profits. I’d really like to hear some experiences from a 1 a year live in home flipper, it seems like the least risky way of doing it, worst case scenario your paying down the mortgage until the market will pay what you feel it’s worth. Obviously not practical for a lot of people (families) but I’m sure there are plenty out there doing this.

I’d also like to hear more about cabin/lake lot real estate investing because around here (Alberta) it seems the price difference between a empty lake lot and a lot with a cabin on it leaves room for some decent profits.

]]> By: Olivia http://www.milliondollarjourney.com/flipping-houses-for-profit.htm/comment-page-1#comment-103332 Olivia Tue, 01 Sep 2009 12:05:11 +0000 http://www.milliondollarjourney.com/?p=978#comment-103332 well from the description about the flipping of houses i can say that this is a job that is not for me as i am bad at buying and selling property but i liked you formula for evaluating the market price... informative post :) well from the description about the flipping of houses i can say that this is a job that is not for me as i am bad at buying and selling property but i liked you formula for evaluating the market price… informative post :)

]]> By: Russell http://www.milliondollarjourney.com/flipping-houses-for-profit.htm/comment-page-1#comment-103193 Russell Mon, 31 Aug 2009 17:40:27 +0000 http://www.milliondollarjourney.com/?p=978#comment-103193 in order for flipping to work the market either has to be in a phase of irrational apreciation on the property has to be purchased at a discount. A discount to the price plus repairs which is the hardest discounts to find. in order for flipping to work the market either has to be in a phase of irrational apreciation on the property has to be purchased at a discount. A discount to the price plus repairs which is the hardest discounts to find.

]]> By: jim http://www.milliondollarjourney.com/flipping-houses-for-profit.htm/comment-page-1#comment-103139 jim Mon, 31 Aug 2009 03:11:46 +0000 http://www.milliondollarjourney.com/?p=978#comment-103139 Agreed with #21. As an electrician who could probably handle 90% of the interior renos myself, but would need help for exterior renos due to lack of experience. I'd much rather come home from work, click on CNBC, and go to my Scottstrade account to see how I'm doing. Being fairly diversified I have about 10 grand set aside at all times that I "play" with on penny and other high risk stocks I move in and out of. I have made profits in 2 days that above posters have made after 3 months not including swear factor. Just my thoughts. I still know a few guys at work who have done rather well flipping homes in higher end Long Island NY areas. Most still say it's very nerve racking and a fairly long process to finally see the CASH. Where as a few clicks of the mouse and I can secure gains..OR loses LOL in nanoseconds. Less stress IMO. If you are passionate about homes and renos go for it. I work with my tools 40+ hrs a week so sitting at a PC 1 hour a day and doing a little DD afterwards seems easier for me to secure gains. Agreed with #21. As an electrician who could probably handle 90% of the interior renos myself, but would need help for exterior renos due to lack of experience. I’d much rather come home from work, click on CNBC, and go to my Scottstrade account to see how I’m doing. Being fairly diversified I have about 10 grand set aside at all times that I “play” with on penny and other high risk stocks I move in and out of. I have made profits in 2 days that above posters have made after 3 months not including swear factor.

Just my thoughts. I still know a few guys at work who have done rather well flipping homes in higher end Long Island NY areas. Most still say it’s very nerve racking and a fairly long process to finally see the CASH. Where as a few clicks of the mouse and I can secure gains..OR loses LOL in nanoseconds. Less stress IMO. If you are passionate about homes and renos go for it. I work with my tools 40+ hrs a week so sitting at a PC 1 hour a day and doing a little DD afterwards seems easier for me to secure gains.

]]> By: Rick Cartstens http://www.milliondollarjourney.com/flipping-houses-for-profit.htm/comment-page-1#comment-102864 Rick Cartstens Sat, 29 Aug 2009 10:31:02 +0000 http://www.milliondollarjourney.com/?p=978#comment-102864 well really a nice piece of information. thanks for posting it... but i have the same question as raised by the frugal trader that do anyone knows the percentage charge for the land transfer tax in Ohio. well really a nice piece of information. thanks for posting it… but i have the same question as raised by the frugal trader that do anyone knows the percentage charge for the land transfer tax in Ohio.

]]> By: FrugalTrader http://www.milliondollarjourney.com/flipping-houses-for-profit.htm/comment-page-1#comment-102796 FrugalTrader Fri, 28 Aug 2009 16:39:38 +0000 http://www.milliondollarjourney.com/?p=978#comment-102796 Anyone know what percentage they charge for land transfer tax in Ontario? Anyone know what percentage they charge for land transfer tax in Ontario?

]]> By: Dk http://www.milliondollarjourney.com/flipping-houses-for-profit.htm/comment-page-1#comment-102794 Dk Fri, 28 Aug 2009 16:15:51 +0000 http://www.milliondollarjourney.com/?p=978#comment-102794 I thought about doing this but Toronto land transfer taxes are astronomical, making it much harder to profit from the flip. I thought about doing this but Toronto land transfer taxes are astronomical, making it much harder to profit from the flip.

]]> By: Matt http://www.milliondollarjourney.com/flipping-houses-for-profit.htm/comment-page-1#comment-102662 Matt Fri, 28 Aug 2009 05:12:24 +0000 http://www.milliondollarjourney.com/?p=978#comment-102662 I'd rather invest in dividend paying stocks and watch the boob tube after I get home from work :-) I’d rather invest in dividend paying stocks and watch the boob tube after I get home from work :-)

]]> By: Ashley http://www.milliondollarjourney.com/flipping-houses-for-profit.htm/comment-page-1#comment-102559 Ashley Thu, 27 Aug 2009 19:41:11 +0000 http://www.milliondollarjourney.com/?p=978#comment-102559 I've once found myself glued to the TV watching a Flip That House marathon. I was amazed at how many people landed upside down instead of making the huge profits they just knew would be theirs! I second the posts that speak to a requirement to be passionate about home remodeling foremost and seeking profit as an added benefit. That type of mentality would likely make the entire project run much more smoothly. IDK, I can't imagine all that work for a $750 profit. Then again I'm not that passionate about houses. I’ve once found myself glued to the TV watching a Flip That House marathon. I was amazed at how many people landed upside down instead of making the huge profits they just knew would be theirs!
I second the posts that speak to a requirement to be passionate about home remodeling foremost and seeking profit as an added benefit. That type of mentality would likely make the entire project run much more smoothly. IDK, I can’t imagine all that work for a $750 profit. Then again I’m not that passionate about houses.

]]> By: Colin http://www.milliondollarjourney.com/flipping-houses-for-profit.htm/comment-page-1#comment-102557 Colin Thu, 27 Aug 2009 19:30:49 +0000 http://www.milliondollarjourney.com/?p=978#comment-102557 Unless the market is hot hot hot, I would caution getting into this area unless you are very skilled as a tradesman. Many a flipper have lost their shirts on unexpected problems uncovered during renovations. That said, the following website may have some relevant free spreadsheets for some of you considering flipping or rental properties. http://www.mortgageinvestment.com/Real_estate_and_mortgage_downloads/downloads.htm I have used one of the spreadsheets quite extensively while prospecting for rental properties (though I modified slightly to my own requirements). But it was (and is) very helpful. Colin Unless the market is hot hot hot, I would caution getting into this area unless you are very skilled as a tradesman. Many a flipper have lost their shirts on unexpected problems uncovered during renovations.

That said, the following website may have some relevant free spreadsheets for some of you considering flipping or rental properties.

http://www.mortgageinvestment.com/Real_estate_and_mortgage_downloads/downloads.htm

I have used one of the spreadsheets quite extensively while prospecting for rental properties (though I modified slightly to my own requirements). But it was (and is) very helpful.

Colin

]]> By: Bryce http://www.milliondollarjourney.com/flipping-houses-for-profit.htm/comment-page-1#comment-102554 Bryce Thu, 27 Aug 2009 19:11:56 +0000 http://www.milliondollarjourney.com/?p=978#comment-102554 Cacp - Sounds like you need to find a new broker to work for. The broker shouldn;t be taking 25% of the total commission on each side, it should be 25% of the commission from their agent. Instead of 1.5% you get 2.25% which is pretty significant over the course of a year. My friend is an agent and his broker takes 20% of what he makes, and every cent over $100k total commissions for the year is only taken at 5%. Cacp – Sounds like you need to find a new broker to work for. The broker shouldn;t be taking 25% of the total commission on each side, it should be 25% of the commission from their agent. Instead of 1.5% you get 2.25% which is pretty significant over the course of a year.

My friend is an agent and his broker takes 20% of what he makes, and every cent over $100k total commissions for the year is only taken at 5%.

]]> By: Bryce http://www.milliondollarjourney.com/flipping-houses-for-profit.htm/comment-page-1#comment-102553 Bryce Thu, 27 Aug 2009 19:11:24 +0000 http://www.milliondollarjourney.com/?p=978#comment-102553 Cacp - Sounds like you need to find a new broker to work for. The broker shouldn;t be taking 25% of the total commission on each side, it should be 25% of the commission from their agent. Instead of 1.5% you get 2.25% which is pretty significant over the course of a year. My friend is an agent and his broker takes 20% of what he makes, and every cent over $100k for the year is only taken at 5%. Cacp – Sounds like you need to find a new broker to work for. The broker shouldn;t be taking 25% of the total commission on each side, it should be 25% of the commission from their agent. Instead of 1.5% you get 2.25% which is pretty significant over the course of a year.

My friend is an agent and his broker takes 20% of what he makes, and every cent over $100k for the year is only taken at 5%.

]]> By: used tires http://www.milliondollarjourney.com/flipping-houses-for-profit.htm/comment-page-1#comment-102527 used tires Thu, 27 Aug 2009 17:29:23 +0000 http://www.milliondollarjourney.com/?p=978#comment-102527 I've never personally taken on a house flipping project, but it is something I have always wanted to try, personally I think it's slowly becoming a fad because we see how easy it looks on TV shows. What I wonder is, when it comes to professionals what are their % of Loss vs Gain. Till then, Jean I’ve never personally taken on a house flipping project, but it is something I have always wanted to try, personally I think it’s slowly becoming a fad because we see how easy it looks on TV shows. What I wonder is, when it comes to professionals what are their % of Loss vs Gain.

Till then,

Jean

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