You buy  a home, fix it up, then sell it for a higher price. It's the growing trend of house flipping. In fact, over 207,000 single family homes and condos were flipped last year, and increase of 3000 over 2016 and the most since 2006.

Don’t be fooled by what marketers and the TV tell you. It’s not as easy to flip a home as they would make it seem.  But flipping a home is certainly worth the effort if you protect yourself.

Here's a few ways you can avoid the pitfalls:

Be careful where you take advice. 

Since 2008, it’s been easier to make a profit when flipping a home since prices have been rising. But when prices fall, it’s not so easy.  Try to get advice from home flippers who have been through several market cycles and know how to handle the changes.

Keep an eye on the market.

If you see increased inventory, longer days on the market, or falling home prices, be on guard. If any of these situations happen, it could take more time to sell and you may not sell for as high a price as you anticipated.

Avoid short term loans.

Flippers tend to go with short-term loans, but they can actually be more costly as interest rates rise. This will obviously eat into your profits.

Don't cut corners.

Permits are a necessary part of remodeling a home, so don’t try to get around them. You could be held liable for damages or have to redo work that was done without the proper permits.

Make the Time.

Your time is an important commodity to take into account when flipping a home. If you have a full-time job on top of it, you have to make sure you have the time and energy to devote to the renovation. If you don't have the time, make sure you find someone to partner with who has the time and experience. After taking an honest look at your time, you may discover that flipping a home is not the right move for you.

Flipping a home can be a rewarding adventure and a great way to make money if you do it right.

Check back on our blog every week for more real estate advice and local articles about living in Albuquerque. And make sure to follow us on Facebook for up to date real estate news for Albuquerque and surrounding areas.

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