One of the most frequently asked questions that we get is whether or not house flipping in Southern Virginia is profitable. This is an answer that can vary depending on a number of factors including the time of year or the political climate, but for the most part the answer is a very consistent yes. In order to evaluate the profitability of house flipping in Southern Virginia, we’ve taken a look at three benchmarks to make our decision.
Available Equity On Existing Homes
When determining whether or not flipping in a specific area is profitable, one of the best benchmarks to review is the available equity on existing properties in the area. Look at if the current housing market shows that homes are not only holding their value, but that they’re continuing to gain equity and, therefore have a high probability of a strong resale value.
Listings versus Price Reductions
Examining the current available homes on the market and their pricing is another excellent marker for whether or not house flipping in Southern Virginia - or in any region, really - is profitable. When you take a look at the comparable homes on the market, or homes with similar finishes and customizations to what you’ll ideally be adding to your property throughout your fix and flip project, be sure you take a look at how long the home has been on the market and whether there have been any drastic price reductions. If a home has been sitting on the market for a while, or has seen a number of price drops, it could signify any number of possibilities, one of which could be that a similar property - or your property - won’t sell quickly.
Unfortunately, when dealing with fix and flips, time is of the essence throughout the entire process. You’ll want to purchase the property before another developer scoops up the deal, finish your renovations as quickly as possible so that you don’t need to worry about extensive labor costs, maintenance fees, or property taxes, and you’ll want to sell the property as quickly as possible so that you can maximize your profit and move on to your next project.
Finally, one of the most important - if not the most important - factors to examine when determining whether house flipping in Southern Virginia is profitable is the economic prosperity and viability of the current market. In areas where there’s low unemployment and stable or rising job growth it can be expected that the area itself will be generally desirable. In areas where there’s a lot of new job growth it can be an especially favorable indicator for fix and flippers as it can show that there could be an influx of young professionals and first-time homebuyers coming into the area.
Now that you know what to look for when deciding which areas to focus your fix and flip search on, take the next step and download our guide Essential Math for the Fix and Flipper and we invite you to get in touch!