| Flipping houses - Click HERE for Original Thread |
| REFLUX |
| Can someone lay out the pro's & con's for fiipping houses/condos in Edmonton? |
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| Fish_e_o |
cons
unseen structural damage
inconsistant income
how do you buy a house when 1000 newfies can't
very foreseeable down turn in economy
hard to buy a house and flip it quickly for profit. you'll have alot of money tied up in it
pro's
sellers market
if you can find a bunch of old ladies selling houses for cheap you'll make alot of money
dude just become a real estate agent they get like 10-15K for each house they sell (of course only a portion 5k or so goes to you)... but it's a sellers market, it's easy to sell a house |
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| jberger |
| the bad---capital gains if its not your main res |
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| SilverZ24 |
^ that is not a con because any income is better than no income and capital gains income is better than regular income since it is only taxed at 50%. Plus you will have lots of other deductions you can use.
But a big con for most people is that no bank will loan you money if you are telling them you are 'flipping' houses. So you need to come up with a better story, and chances are for the majority of people they will have a really hard time getting approved for financing on a second (or more) home.
I personally think you have missed the boat to make any really good money. There are probably a shit load of bandwagon jumpers right now doing just that and helping to increase the market rates at the moment. Eventually all these people will try to start dumping these properties and if the inventories ever get high enough, the price may drop a bit in which case many of the late comers to the party may get screwed. |
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| TrevorK |
quote:
Originally posted by REFLUX
Can someone lay out the pro's & con's for fiipping houses/condos in Edmonton?
The biggest con in my opinion is the large amount needed. You will need to put down a large downpayment and find financing for all of the renovation costs.
This would have to be worked out before you can proceed any further. I know some people do this by borrowing other peoples credit and create convoluted legal agreements about the actual ownership. |
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