Insight

How Home Flipping Has Resurfaced

How Home Flipping Has Resurfaced

Roy D. Oppenheim

Roy D. Oppenheim

October 2, 2019 01:52 PM

The popularity of flipping homes, by purchasers and investors, has increased significantly since investors have recognized the profit that can come from buying, fixing up, and then selling a distressed home. The taboo market of flipping houses has recently seen its own makeover and is now becoming a more accepted and reliable source of housing.

How to flip homes | Learning from Past Mistakes

House flipping, or buying real estate at a discount and then selling at a higher price, became out of favor due to the adverse effects it had on the housing market during the Great Recession. Almost a decade ago, flippers typically bought distressed properties and did not necessarily add to renovating the property; rather, they relied primarily on home price appreciation to fuel profits. Television shows in the past such as Fixer Upper, Property Brothers, and Flip or Flop have all played a role in glorifying the process of flipping a home, making it look much simpler than it really is by simply editing out the “unattractive” side of flipping. These programs, hosted by Hollywood personalities, inspired people to attempt to flip a home despite their limited knowledge on the subject.

So, What’s Changed?

Flippers in more recent years during the post-recession market are more educated on the subject and can focus more on adding value to properties as opposed to price speculation. More emphasis is on the eventual purchaser’s or renter’s satisfaction, as there are fewer vacancies when the property is restored and renovated. Loans tailored to flippers and short-term real estate investors are more accessible now, and lenders offer an array of varying loans ranging from flip-and-fix loans for first-time flippers to bridge loans for more experienced investors. While approximately one-third of home-flips are held as rentals, most investors are investing in higher quality renovations at the beginning of the flipping process, thereby providing value to the community by raising home values and, in turn, stabilizing the neighborhood. Local business owners such as contractors and electricians who are hired to provide services during a flip, add to the local economy. Extensive renovations also mean fewer future instances where an investor may have to perform substantial maintenance.

House Flipping in Florida

The percentage of flipped home sales in the U.S. was 7% in the first half of 2019, the highest percentage in almost a decade. While the whole nation seems to be getting on the bandwagon, Florida is quite notable in the market. Our Sunshine State finds itself among the top states for flipping homes, its cities taking up six spots in the top 50 best places to flip in the country. Cities such as Tampa, Cape Coral, and Pembroke Pines are among the many that have the highest calculated market potential and quality of life with the lowest remodeling and repair costs.

Flip or Flop?

With the memory of the Great Recession of 2007, many are rightfully hesitant to get into the housing market by flipping homes; however, the process is less speculative than it was in the 2000s and may provide more benefits than risks in the post-recession era as sellers and investors learn from their pre-recession mistakes and provide a more sustainable housing environment.

From the Trenches,

Roy Oppenheim

Originally posted at South Florida Law Blog: Flipping Out: How the Process of Home Flipping Has Resurfaced https://southfloridalawblog.com/flipping-out-how-the-process-of-home-flipping-has-resurfaced/

Trending Articles

2025 Best Lawyers Awards Announced: Honoring Outstanding Legal Professionals Across the U.S.


by Jennifer Verta

Introducing the 31st edition of The Best Lawyers in America and the fifth edition of Best Lawyers: Ones to Watch in America.

Digital map of the United States illuminated by numerous bright lights

Unveiling the 2025 Best Lawyers Awards Canada: Celebrating Legal Excellence


by Jennifer Verta

Presenting the 19th edition of The Best Lawyers in Canada and the 4th edition of Best Lawyers: Ones to Watch in Canada.

Digital map of Canadathis on illuminated by numerous bright lights

Legal Distinction on Display: 15th Edition of The Best Lawyers in France™


by Best Lawyers

The industry’s best lawyers and firms working in France are revealed in the newly released, comprehensive the 15th Edition of The Best Lawyers in France™.

French flag in front of country's outline

Presenting the 2025 Best Lawyers Editions in Chile, Colombia, Peru and Puerto Rico


by Jennifer Verta

Celebrating top legal professionals in South America and the Caribbean.

Flags of Puerto Rico, Chile, Colombia, and Peru, representing countries featured in the Best Lawyers

Announcing the 13th Edition of Best Lawyers Rankings in the United Kingdom


by Best Lawyers

Best Lawyers is proud to announce the newest edition of legal rankings in the United Kingdom, marking the 13th consecutive edition of awards in the country.

British flag in front of country's outline

Unveiling the 2025 Best Lawyers Editions in Brazil, Mexico, Portugal and South Africa


by Jennifer Verta

Best Lawyers celebrates the finest in law, reaffirming its commitment to the global legal community.

Flags of Brazil, Mexico, Portugal and South Africa, representing Best Lawyers countries

Prop 36 California 2024: California’s Path to Stricter Sentencing and Criminal Justice Reform


by Jennifer Verta

Explore how Prop 36 could shape California's sentencing laws and justice reform.

Illustrated Hands Breaking Chains Against a Bright Red Background

Announcing the 16th Edition of the Best Lawyers in Germany Rankings


by Best Lawyers

Best Lawyers announces the 16th edition of The Best Lawyers in Germany™, featuring a unique set of rankings that highlights Germany's top legal talent.

German flag in front of country's outline

Celebrating Excellence in Law: 11th Edition of Best Lawyers in Italy™


by Best Lawyers

Best Lawyers announces the 11th edition of The Best Lawyers in Italy™, which features an elite list of awards showcasing Italy's current legal talent.

Italian flag in front of country's outline

Tampa Appeals Court ‘Sends Clear Message,” Ensuring School Tax Referendum Stays on Ballot


by Gregory Sirico

Hillsborough County's tax referendum is back on the 2024 ballot, promising $177 million for schools and empowering residents to decide the future of education.

Graduation cap in air surrounded by pencils and money

Find the Best Lawyers for Your Needs


by Jennifer Verta

Discover how Best Lawyers simplifies the attorney search process.

A focused woman with dark hair wearing a green top and beige blazer, working on a tablet in a dimly

Key Developments and Trends in U.S. Commercial Litigation


by Justin Smulison

Whether it's multibillion-dollar water cleanliness verdicts or college athletes vying for the right to compensation, the state of litigation remains strong.

Basketball sits in front of stacks of money

Woman on a Mission


by Rebecca Blackwell

Baker Botts partner and intellectual property chair Christa Brown-Sanford discusses how she juggles work, personal life, being a mentor and leadership duties.

Woman in green dress crossing her arms and posing for headshot

Best Lawyers Celebrates Women in the Law: Ninth Edition


by Alliccia Odeyemi

Released in both print and digital form, Best Lawyers Ninth Edition of Women in the Law features stories of inspiring leadership and timely legal issues.

Lawyer in green dress stands with hands on table and cityscape in background

The Human Cost


by Justin Smulison

2 new EU laws aim to reshape global business by enforcing ethical supply chains, focusing on human rights and sustainability

Worker wearing hat stands in field carrying equipemtn

Beyond the Billables


by Michele M. Jochner

In a recently conducted, comprehensive study, data reveals a plethora of hidden realities that parents working full-time in the legal industry face every day.

Women in business attire pushing stroller takes a phone call