4 Dangers In Flipping Real Estate

If you have recently purchased some real estate for investment purposes, you are in good company. Recent reports suggest that as many as 25% of these purchases are made by those who plan on using the property for investment purposes only. If you hope to "flip" the property there are 4 things you must be aware of that can put a crimp on your profits.

1. Property Taxes. Keep the property for a few years and you may experience a surge in property taxes especially if your taxes are reevaluated during that time. Some hot real estate markets have seen taxes nearly double in just 5 or 6 years.

2. Renovation Expenses. You may have purchased a "fixer upper" at a bargain rate. Once your project is complete will you be able to recover the expenses and make a profit especially if the value of your renovated property is above those in your neighborhood? In addition, can you withstand a correction in real estate values?

3. Insurance and Mortgage Costs. You will pay more for homeowners insurance if you do not occupy the residence and you have tenants. If you are financing the property you know that your mortgage rate is higher as well.

4. Rental Pressures. A market saturated with rentals will mean that the rents you can charge will be less than what you had hoped to receive. In some markets you are required to get special licensing in order to be a landlord. In other markets the legal rights of tenants mean you could have a lengthy and expensive battle in ridding yourself of a bad tenant. Will the lower income levels coupled with the added expenses drag your investment down?

Of course, you can limit your risks [and costs] by doing the majority of the upgrades yourself, appealing excessive property tax increases, and finding for yourself a trusted and dependable tenant. It isn't easy flipping a home, but with a lot of pluck and determination it can result in strong profits for you.

Matthew Keegan is The Article Writer who writes on just about any and every issue imaginable. You can preview samples from his high performing site at http://www.thearticlewriter.com

---

What to Look for in a Home

Searching for just the right home can be very exciting.... Read More

Selling by Owner Escrow or Closing Checklist

Home sellers should keep on top of their pending sale;... Read More

How to Become a Successful Real Estate Investor

Many folks dream of becoming real estate investors, but not... Read More

How Can the Average Person Build Wealth in Real Estate?

Books on real estate are a dime a dozen-and most... Read More

Taxes When You Sell Your Home

What's the difference between death and taxes?Death doesn't change every... Read More

When Showing Your Home

Here below are some of the reasons why buyers may... Read More

Forclosure And The Durrett Rule

It's probably happened to you...Folks learn that you know something... Read More

Kings Bay, Saint Marys and Kingsland Georgia Real Estate - Mortgage Lenders

When looking for a home, it is important to first... Read More

Real Estate Investing - Books,TV Infomercials, and Seminars

Real estate investing has become popularized today because of real... Read More

European Second Home Prices Wilt in Drought

Spain and Portugal have suffered one of their worst droughts... Read More

Rental Properties: 10 Ways To Increase Income

What if you want better cash flow from your rental... Read More

How to Calculate Real Estate Rehab Profits

If you are investing in real estate you will face... Read More

Branded Email in the Real Estate Industry

Branded Email in the Real Estate IndustryYou're in the real... Read More

NAHB?s Voluntary Model Green Home Building Guidelines

The voluntary Model Green Home Building Guidelines are designed to... Read More

7 Marketing Methods for Real Estate Coaches

You shower, shampoo, dress your best, check to see if... Read More

Much Ado About Mansionization?

Is there a perpetual shadow hovering over your house? Do... Read More

Building Your Dream Home - Part 1

For most of my adult life I had thought about... Read More

Lease Options or Rent to Own?

Finding a rent-to-own house is one of the many ways... Read More

The Best Way To Get Real Estate Listings

The Real Estate Industry is HUGE and is a golden... Read More

FSBO - Selling Your Home FSBO (for sale by owner) ? Is It Worth It?

FSBO, what is it? FSBO means For Sale by Owner,... Read More

How to Sell Your Home Without a Real Estate Agent

Considering the rapid rise in home prices over the past... Read More

The Great Real Estate Bubble Quiz

You hear it asked on the radio, in the newspapers... Read More

Buying Country Acreage and Rural Properties, To Buy or Not To Buy

Almost anyone can become a rural property owner; if you... Read More

How to Sell Your House For Full Price

Many people believe that a real estate broker is needed... Read More

Why it is Important to Hire Just One Real Estate Agent to Buy a Home

In our fast paced and frantic real estate market, buying... Read More

Real Estate Investing: How to Choose a Lender

To become a successful real estate investor it's vital to... Read More

Real Estate Research By Talking

Real estate research might start with a look at the... Read More

RESPA: The Real Estate Settlement Procedures Act

The Real Estate Settlement Procedures Act (RESPA) is a consumer... Read More

Property Investing Secrets 3

Property Investing Secrets: When you Make Property Easy to Buy... Read More

Real Estate Investors: How to Get a Powerful Marketing Education for Free

I am a total geek.A few weeks ago, late at... Read More

Is a Vacation Home Right for You?

Many of us dream about owning the vacation home in... Read More

What To Expect In Closing Costs On A Home Purchase

Many are taking advantage of this year's low mortgage rates... Read More

Jacksonville Real Estate Listings

With over 30,000 residents, Jacksonville in central Arkansas is a... Read More