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
National

US military tried, but failed to rescue journalist…

The U.S. military earlier this year tried to rescue journalist James Foley and other American hostages held in Syria ,but failed to find the captives.

National

Fate of captured beluga whales in hands of…

A Georgia aquarium went to court on Wednesday seeking federal permission to bring 18 captured beluga whales to the United States from Russia.

Local

After Eric Garner death, religious leaders meet to…

Interfaith leaders convened with city officials to discuss what the community can do to help dial down heightened tensions after Eric Garner's death.

Local

'Suspicious' Hamilton Heights fire caused by power strip:…

An extension cord overload caused the deadly fire in Hamilton Heights late Monday that killed a 15-year-old girl and injured at least 12 others.

Movies

Review: 'Sin City: A Dame to Kill For'…

The belated sequel "Sin City: A Dame to Kill For" makes one question whether the first one may have been not so hot. Still, Eva Green vamping!

Television

'So You Think You Can Dance' recap: Season…

And then there were six. It was a big night on stage as the Top 6 got to dance with each other, All-star partners and perform a solo routine.

Going Out

5 things to do in NYC this weekend…

FILM Lebowski Fest Aug. 22-23, 8 p.m. Various locations, Manhattan $20-$30, www.lebowskifest.com The Dude abides — for 48 hours to celebrate the 1998 Coen brothers classic.…

Television

'Doctor Who' personality profile: the 4 Doctors

When the time comes for a new Doctor, there's always some anxiety over the big question: Who will he be? The series owes its longevity…

NFL

Giants expected to work Corey Washington into first-team…

The day of reckoning for the Giants' fringe players will fall upon them Friday night against the Jets.

NFL

Jalen Saunders still unsure what caused car accident…

Jets rookie wide receiver Jalen Saunders spoke to the media Wednesday for the first time since his car accident, but he didn't say a whole lot.

NFL

2014 Fantasy Football: Rankings, list of top NFL…

2014 Fantasy Football: Rankings, list of top NFL defense (DEF)

NFL

2014 Fantasy Football: Rankings, list of top NFL…

2014 Fantasy Football: Rankings, list of top NFL quarterbacks (QB)

Sex

Online dating for every generation

Frank Jackson and his mother Maggie are like lots of modern families: They have dinner together regularly, keep each other updated on their lives —…

Wellbeing

Going green could be the key to getting…

If we could just pursue the things that would actually make us happy, we could help the environment too, according to a New York researcher.…

Wellbeing

Metabolic syndrome could have a sugar link

Scientists in St. Louis may have found another culprit in metabolic syndrome, which can lead to heart disease and type 2 diabetes.  Uric acid is…

Wellbeing

Another way stress hurts your unborn baby

Mothers know to try staying calm during pregnancy, as stress has been linked to behavioral and developmental problems for their babies. But now, a new…