You have all seen the ads on television…Buy a house for no money down and sell it before the first payment is due. You see the shows where they make $50, $60, $100, thousand dollars off a house that was fixed up for relatively no money.

BUT is this all true??? The answer is yes…and no!!! Flipping is a good way to make an income especially in this down market. There are plenty of good foreclosed properties on the market (for good prices). BUT beware….its not as easy as they make it look on TV. I have never known anyone (personally) who bought a house for no money down.

You can find good deals but be prepared to spend around $100-$150 thousand dollars of your own money. Once you buy the house….you will need to fix it up. Plan on having the house anywhere from 30 to 120 days, and remember…everyday you own the property it will cost you in interest, utilities, taxes, and insurance’s

The FHA keeps going back and forth on the anti-flipping regulations. Meaning that you cannot get an FHA mortgage on a home that has been purchased in the last 90 days, this law is currently on hold (not in force) but many lenders still won’t approve a loan in less than 90 days.

By no means am I saying don’t try flipping….I am only saying…DO YOUR HOMEWORK FIRST.

This entry was posted on Tuesday, April 6th, 2010 at 2:04 pm and is filed under In the Media. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.