KUSA - While a stagnant economy may have deterred some house flippers, a recent recovery has people once again looking for homes to fix up and resell for a quick profit.
Flipping - or buying and selling a property within six months - rose for the second year in a row, up .33 in 2012 after increasing by a staggering 12 percent in 2011, CNBC reports.
This spelled out average profits of $37,375 for house flippers.
CNBC had three tips for aspiring house flippers looking to enter the market:
- Pick your spots: The best places to flip included Orlando, Fla.; Richmond, Va.; Tucson, Ariz.; and Charlotte, N.C.
- Cash is king: Now that banks have tighter restrictions, real estate investors handling everything in cash can have an upper hand. One real estate expert told Reuters that having cash on hand can sometimes generate "significant discounts" on a deal.
- Renovations matter, but stick to a budget: Don't spend more than 25 percent of your expected sale price on necessary upgrades, CNBC reports. Exceeding that level leaves little room for error if buyers don't flock to the property.
- Be prepared to hold: You may have to rent out properties as the housing market continues to recover, one expert told CNBC.