Real estate: Avoid a flop when flipping

 

A home on Alder Street, before house flipper Mike Tomasetti stepped in. Credit: Mike Tomasetti
A home on Alder Street, before house flipper Mike Tomasetti stepped in.
Credit: Mike Tomasetti

It seems like the housing market is finally starting to steady itself. This year, reports from various sources, including the National Association of Realtors, have shown positive numbers and outlooks for the market, which got us wondering: If we were feeling real saucy, what would it take to flip a house in Philly? We spoke with Mike Tomasetti, real estate investor and owner of Philly Home Flipper, to find out.

Location, location, location

Sounds cliché, sure, but there’s a reason this is the golden rule of real estate. “Investing in desirable neighborhoods reduces risk by ensuring a strong pool of buyers,” Tomasetti tells us. “Areas consistently in demand are Bella Vista, Queen Village, Society Hill, and Washington Square West.”

Of course, a flip-worthy house will not be cheap in these hoods. “These areas require a high capital investment,” says Tomasetti, “but they can reward big returns.”

Tomasetti reminds us that neighborhoods in transition — which he says includes Pennsport, Kensington and Francisville — are also worth investigating. “These areas are desirable to first-time home buyers and require less capital.”

Budget

Make sure you crunch the numbers and remember that every aspect of buying and selling has a price tag. “Before closing a deal, walk through the property with your general contractor to get a solid estimate of construction costs,” says Tomasetti. “If you plan to use investors, make sure you know the cost of those funds. And talk to your insurance agent. Consider closing costs of the purchase and sale.”

Know your buyer

Your flip could be dazzling, but if it isn’t what your buyer had in mind, it could be a flop. According to Tomasetti, there are specific things a flipper should know about his buyer. “How much are they willing to pay? What types of amenities are important to them? To determine these factors, tour open houses in the same neighborhood and get a good understanding of the product,” he says. Remember, you’re flipping the house to fit what the buyer wants, not what you want.



News
Entertainment
Sports
Lifestyle
International

Many deaths as boat with African emigrants sinks…

BENGHAZI Libya (Reuters) - A boat packed with up to 250 African emigrants trying to reach European shores sank on Sunday off the Libyan coast…

Local

State health department warns against rare respiratory virus…

The New York State Department of Health is calling upon parents to be aware of the symptoms of enterovirus EV-D68. More than 12 children across the…

National

Liberal Vermont Senator Sanders may seek U.S. presidency…

By Will DunhamWASHINGTON (Reuters) - Bernie Sanders, one of the Senate's leading liberals, said on Sunday he is thinking about running for U.S. president in…

Money

Second Shift: Turning fun into money

In this week's Second Shift series, meet a New Yorker who has established two successful careers around having fun.

Movies

Dan Stevens kisses Cousin Matthew goodbye

Dan Stevens wanted a change and he certainly got one. After quickly developing a devoted fan base as Matthew Crawley on "Downton Abbey," the 32-year-old…

Movies

Nerd alert: Genesis Rodriguez, robot-maker

Geeks of the world, you're about to fall in love with Genesis Rodriguez. There's no point in resisting. The actress, appearing in Kevin Smith's totally…

The Word

The Word: Kanye West wants everyone on their…

Maybe we can blame this one on the migraine, too. Kanye West is drawing ire for halting a performance in Sydney when his demands that…

Movies

That's a wrap on TIFF 2014

This year's Toronto International Film Festival closes without the satisfying sense of certainty that had become a mainstay in recent years. Last year, for example,…

NFL

3 things we learned in Jets loss to…

The wheels came off for the Jets, who gave up 21 unanswered points after a brilliant first 20 minutes in a 31-24 loss at the Packers.

NFL

Victor Cruz catches case of the drops in…

The Giants dropped a tough, 25-14, decision to the undermanned Cardinals Sunday in their home opener. And drop was the operative word of the day,…

NFL

Giants vs. Cardinals: 3 things we learned

The Giants heard all week about how ragged their new offense has looked, but even when they finally answered the bell they still can’t find a way to win.

NFL

About a quarter of football players will get…

About one in four National Football League players are likely to end up suffering cognitive impairments during their lifetime, according to a report.

Home

DIY design: Try this upcycle furniture project

Tiffany Threadgould is living a DIY life. The Chief Design Junkie at TerraCycle, an international waste management company headquartered in Trenton, New Jersey, grew up…

Parenting

The downside of a BFF

For teenage girls a best friend can mean everything, but the way they deal with their problems together can lead to depression

Education

How many colleges should I apply to? Your…

To the average high school senior, creating the perfect college application can seem like a golden ticket into their future. Students and their parents spend…

Career

How Generation Z will change the way Americans…

What to learn how to establish a career in this new economy? Look no further than the current generation of young people - that is,…