Flipping houses sounds like an easy way to make money, but is it?

Flipping houses sounds like an easy way to make money, but is it? - Question on Quora.com

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No, it’s definitely not as easy as the HGTV house flipping shows make it look.

The HGTV shows act like anyone can flip a house in 23 minutes by simply slapping some shiplap on a couple of walls and make a $100k profit…it’s not that simple.

Flipping houses is a business that has many challenges:

Overpaying for Deals

1. Over-Estimate the After Repair Value (resale value)
2. Under-Estimate Repair Costs
3. Under-Estimate the Other Costs (Buying, Holding, Selling & Financing)

Unforeseen Repairs & Expensive Change Orders

1. Unforeseen Foundation Issues & Structural Repairs
2. Dated Electrical or Plumbing Systems
3. Water Damage / Termite Damage
4. Lead Paint/Asbestos/Mold Abatement

Dealing with Bad Contractors

1. Contractors not pulling permits
2. Unqualified contractors
3. Unlicensed contractors
4. Uninsured contractors
5. Shoddy work and craftsmanship
6. ​Contractors not showing up
7. Construction delays
8. Contractors stealing your deposit
9. Unsafe working conditions or practices
10. You Mismanage Your Contractors​

Bad Location

1. Bad neighbors​
2. Bad Public Schools
3. Crime/Burglary/Break-ins
4. Vandalism
5. Squatters/Existing Tenants

Bad Market

1. Recessions
2. Market corrections
3. Dropping property values
4. High inventory
5. Low appraisals
6. Government regulations

If you can stomach all of these challenges, then maybe you can be a house flipper?

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