ReSET Blog
Blog · February 23, 2021 · AUTHOR: Yvonne Nguyen

Flipping Houses in the Midst of a Pandemic


Strangely enough, the real estate industry has remained steady, if not thriving, despite the pandemic. When the pandemic hit the US last March, sellers were wary of the volatile market and preemptively retracted their listings. However, as mortgage rates dropped, more people found that they are able to afford homes which allowed the housing market to stay competitive throughout these rough times. Buyers flooded the market to find low inventory which drove the market selling price up. Interestingly, buyers weren’t looking into just any house, but specifically houses that were “move-in ready” — most likely to avoid having contractors constantly in their new home during a pandemic. 


Fix and flip properties are a great way to get started in real estate investing. It is a profitable industry for people who are looking to buy a fixer upper, renovate, and upsell back into the market. It is the ideal short-term investment as the process typically takes place within a few months. While businesses are being impacted by the pandemic, the real estate industry has remained resilient - it is predicted that flipping houses will remain a lucrative investment throughout 2021. 


One thing to keep in mind if you’re new to flipping houses, you should take extra care to get quotes from contractors and calculate the value of the repaired house to ensure profit. When you’re buying a house with the purpose of repairing and reselling, you want to make sure that you’ll make a profit or, at the very least, break even. Be sure that you are well aware of the market you’re in and the selling price of the houses in your neighborhood.


If you don’t know where to start, the first step is to get an estimated value of the house you are buying. Once you’ve attained the value of the house in its current condition, reach out to contractors and research the cost of the material and labor needed for your renovation. Some investors find it most cost effective to do small projects themselves, and outsource for the bigger renovations. Keep in mind the costs and fees that are included in listing and selling a house — holding expenses, seller’s agent fees, transfer tax, closing costs, etc. 


If you’re considering a major renovation, the SetValue site is a great tool to get a price evaluation. Not only can you get an estimate of what the house is currently worth, it is the only site that allows you to simulate renovations and allow you to see the change in property value according to those improvements. This is a great tool for novice flippers; it takes the guesswork out of whether or not your renovations will be worth it. 


A house is a large investment and it would not be economical to buy a house with the intention of flipping it if it wasn’t guaranteed to make some sort of profit, especially if you’re new to flipping houses. Be sure to allocate your resources wisely and keep track of your market to ensure a successful flip. Investment properties have the potential to be a great source of supplemental income.

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