In some parts of the country, you can still purchase a home, make some simple repairs, and then flip it, making a small profit, along the way.
Of course, with the slower real estate market, inventory levels are high, making it increasingly difficult to sell your property, if no one is buying.
Real Estate Journal does a great job of covering the idea – just about every other week they analyze a deal. Usually, it’s a small-time investor, and most of the time, the return on investment is small, too.
In this case, the seller has the potential to make over $20,000, on a home he bought last year.
That’s pretty damn good, considering he borrowed most of the money, to buy it.
Still, he might be facing some serious trouble, down the line.
Purchased: December 2005 for $116,000
Sold: The property has not yet sold
Home-price appreciation: Potentially $33,000, or 28.45%, based on the homeowner’s asking price.
The investor: Bill Klein, 49, restores and sells classic cars in Ogden, Utah. He’s been investing in real estate for five years to augment his income.
The property: The 1961 brick rambler in Ogden, Utah, is a 2,250-square-foot, single-family home with a basement apartment. The house sits on a 5,225-square-foot lot.
Complete article: Car Salesman Hits a Bump In the Road With Home Rental – By Jane Hodges, Real Estate Journal