Investments: Flip or Flop By: Azjah Cameron

Overview Buying property/houses at ideal low prices Making the necessary renovations and upgrades Then later reselling the house for a profit

Popularity HGTV Flip or Flop Fixer Upper Flip This House Flipping Out Brother vs. Brother Love It or List It

Breaking it Down Learn your market Understand finance options Learn to negotiate Costs of average projects Network Research listings and foreclosures Find/build your team Relist and sell

Risk vs. Reward House flipping is at the most popular it’s been in a decade AGP in 2017: $66,448 In 2016, 12% of flips sold at break-even or loss 28% of flips returned 20% less than the purchase price 20% is the minimum profit High-risk investing High risk, yields high rewards

Things to Consider Interest rates Property taxes Utilities Capital gains taxes Unforeseen costs Staging and closing costs Building permits Insurance Human labor

Strategies & Methods Start with a plan Buy low, sell high Make smart renovations Use the 70% rule Pay no more than 70% of the after repair value (ARV) of a property minus the cost of the repairs needed. Find a mentor/partner

Getting Started Great credit PLAN Research the market (up-an-coming cities, growth) Research the ideal location (school zones, cost of living) Time Patience Strong work ethic Cash Decreases the need for accruing debt

On the Rise 1. Tennessee Average house listing price: $268,692 Average time to flip: 147 days Average profit: $57,600 Average ROI: 132.7 percent 2. Pennsylvania 3. New Jersey 4. Louisiana 5. Colorado

Money Crashers Dave Ramsey Investopedia CNBC