The distressed housing market of the last few years has reinvigorated a particular type of home sales strategy: house flipping. Richard Von Alvensleben, Chief Executive Officer and Sales Manager of OneUP Construction, provides some insights into this potentially lucrative strategy.
Question: What is the basic concept of house flipping?
Von Alvensleben: Essentially, house flipping involves purchasing a house, making any necessary repairs or upgrades, and then quickly putting it back on the market for a profit.
Q: How do you make a profit on the sale?
RVA: This is where the strategy comes in. The key to being a good “flipper” is to buy homes that do not sell themselves well but are not in need of too much work. Sometimes relatively minor changes to important areas like kitchens or bathrooms or a simple but professional landscaping job can add great value to the house. The other key to making a profit is being able to get rid of the house quickly. Renovating something you can’t sell eats up all your profits and then some.
Q: What types of improvements does a flipper typically look for?
RVA: Homes that need aesthetic work, such as new cabinets or countertops, plumbing or light fixtures, or window treatments are great prospects for flipping. Homes that need even simpler renovations such as landscaping, carpeting, or a fresh coat of paint are even better choices.
Q: Are there homes that prospective buyers should not attempt to flip?
RVA: Houses that need a lot of structural work, electrical work, and internal plumbing will be more difficult to make a profit on when flipping.
Richard Von Alvensleben has resold more than 1,500 renovated properties in the last ten years and has been with OneUP Construction since 2011. In 2008, his best year, he flipped more than 450 houses.