Editor’s note: This article was first published in September 2020 and reflects market conditions at that time.
Flipping homes was once seen as a job for professionals, or as television entertainment. By 2020 that had changed. People from many different backgrounds were turning to house flipping as a way to make money.
What fix and flip means
Fix and flip means buying a property, fixing it up and selling it for a profit. It’s a short-term investing strategy. With good planning and some know-how, it can produce an excellent return.
What the 2020 data showed
Research from ATTOM Data Solutions looked closely at home flipping in 2020. It found that more than 50,000 single-family homes and condos were flipped in the U.S. in the first quarter alone, the most since the second quarter of 2006.
The Home Flipping Report also found that the typical flipped home in 2020 was bought for around $230,000 and sold for a gross profit of just over $62,000.
Gross profit isn’t take-home profit. Renovation, financing, taxes and selling costs all come out of that figure, which is why careful budgeting matters so much.
Getting started
If you’re considering your first flip, start with the basics:
- 3 tips to fix and flip a house quickly
- Rules to follow when flipping a house
- 3 important loan tips for fix and flip properties
Sachem Lending has a team of experienced professionals who understand what flippers are trying to do. Learn about our fix and flip loans, or fill out an application today.
