The Clinton Herald, Clinton, Iowa

Community News Network

January 22, 2013

House 'flipping' is back

Even in this market, investors are making money on real estate

(Continued)

"Because it’s so much tougher to qualify for a mortgage than it was during the height of the housing boom, many investors prefer to skip all of the red tape and pay with cash," Paffrath said. "That way, they can make purchases a lot faster than they would if they had to go through the traditional lender process."

There are some disadvantages to paying cash. It ties up all your capital, limiting the number of "flips" you can do. But that might turn out to be an advantage, keeping investors from getting over-extended, which happened a lot during the bubble days.

And even though investors are limited to what they can buy with their own money, the post-crash market has offered up lots of bargains in the form of foreclosures and short-sales, so their are plenty of properties in their price range.

Fine, so investors can buy homes, fix them up and put them back on the market. But we've been in a housing recession for a while. Will anyone buy them? Paffrath says they will but you have to pick your markets.

Rising from the ashes

"Right now, Phoenix seems to be the most popular place for flipping," he said. "At the end of 2012, more than one-quarter of buyers in Phoenix were investors, most of whom were from out of state. Because home values are rising so quickly, flippers don’t even have to make any upgrades to the homes. All they have to do is hold onto the property for a few months and let natural area price increases work their magic."

How much can they make? Paffrath says home values in Phoenix are rising about two percent per month. Put a little sweat equity into giving the place some curb appeal and investors can reap a nice return.

Text Only
Community News Network
  • 072214 Diamond Llama 1.jpg Llama on the loose corralled in Missouri town

    A llama on the lam cruised Main Street Tuesday before it mistook a resident’s fenced backyard for a place to grab a meal and freshen up.

    July 22, 2014 2 Photos

  • When your doctor commits suicide, things get complicated

    When they call for appointments, patients are told they can't see their doctor. Ever. The standard line: "We are sorry, but your doctor died suddenly."

    July 15, 2014

  • NWS-HB0713-HowardMartin-004.jpg Airman laid to rest back home in Indiana six decades after death

    The mystery of what happened to a military transport plane that disappeared in the fall of 1952 into an Alaskan glacier was solved two years ago when a helicopter crew spotted the wreckage. But it took another two years to retrieve the remains of Airman Howard Miller and 16 other servicemen passengers. Saturday, Miller was laid to rest in his hometown of Elwood, Ind., with full military honors. Hundreds turned out for the funeral and burial services.

    July 13, 2014 2 Photos

  • This is what happened when I drove my Mercedes to pick up food stamps

     I climbed the ladder quickly, free to work any hours in any location for any pay. I moved from market to market, always achieving a better title, a better salary. Succeeding.

    July 8, 2014

  • Nation's first soda tax could come to Berkeley

    The Berkeley City Council unanimously decided last week to put the 1-cent-per-ounce tax on the ballot this November. Approving the tax would mean a major defeat for the soda industry, which has spent millions to crush the effort nationwide.

    July 7, 2014

  • President Barack Obama mug Best president? Worst president? Don't read too much into those polls

    The questions about who are the best and worst post-WWII presidents are useless. What they mainly show is that Republicans are far more unified around a single story than are Democrats.

    July 2, 2014 1 Photo

  • What states can do on their own about immigration

    It's official: Congress won't take up immigration reform this year. This week, President Barack Obama said he'll use executive actions to change policies unilaterally.

    July 1, 2014

  • The Internet has changed how we curse

    Relatively recent technologies — cable television, satellite radio, and social media — provide us with a not-too-unrealistic picture of how often people swear in public and what they say when they do.

    June 24, 2014

  • May 2014 was the hottest may in recorded history

    According to new data released this week, May 2014 is officially the warmest May in recorded history.
    Both NASA and the Japan Meteorological Agency have tentatively ranked May at the top of historical measurements, though NASA's numbers are preliminary because crucial information is still missing from China.

    June 18, 2014

  • facebook.png Facebook making big changes to its advertisements

    Facebook is making significant changes to the advertisements on its network, and said Thursday that it will give users more control over which ads they see on its network.

    June 12, 2014 1 Photo

Front page
Clinton Herald Photos


Browse, buy and submit pictures with our photo site.

Poll

What are your plans for the weekend?

Enjoying the outdoors
Staying in out of the heat
Traveling
Other
     View Results
AP Video
Olympics 2014
Featured Comment
Featured Ads
Blue Zones Project
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.