It is very difficult to get real estate financing in Virginia Beach, VA. The requirements of investors as well as property developers are very high here. Above all it takes a lot of time to
4 Dangers In Flipping Real Estate
1. Property Taxes. Keep the property for a few years and you may experience a surge in property taxes especially if your taxes are reevaluated during that time. Some hot real estate markets have seen taxes nearly double in just 5 or 6 years.
2. Renovation Expenses. You may have purchased a "fixer upper" at a bargain rate. Once your project is complete will you be able to recover the expenses and make a profit especially if the value of your renovated property is above those in your neighborhood? In addition, can you withstand a correction in real estate values?
3. Insurance and Mortgage Costs. You will pay more for homeowners insurance if you do not occupy the residence and you have tenants. If you are financing the property you know that your mortgage rate is higher as well.
4. Rental Pressures. A market saturated with rentals will mean that the rents you can charge will be less than what you had hoped to receive. In some markets you are required to get special licensing in order to be a landlord. In other markets the legal rights of tenants mean you could have a lengthy and expensive battle in ridding yourself of a bad tenant. Will the lower income levels coupled with the added expenses drag your investment down?
Of course, you can limit your risks [and costs] by doing the majority of the upgrades yourself, appealing excessive property tax increases, and finding for yourself a trusted and dependable tenant. It isn't easy flipping a home, but with a lot of pluck and determination it can result in strong profits for you.
Whether it is your first home or the home you plan to retire in, I will be there to ease the process every step of the way! I find great pleasure in helping people achieve their goals in real estate a....
Latest Blog Posts
Blu Skyy Realty, provides reliable and highly efficient real estate services as well as property management service in Virginia Beach, VA and neighborhoods for years. As a professional
Marion Long is an experienced real estate agent of Virginia Beach, VA and Blu Skyy Realty, the professional real estate agency owned by Marion Long offers a wide range of real estate services to
Blu Skyy Realty is one of the reputed real estate agencies in Virginia Beach, VA offering a wide range of real estate services to the clients. This real estate firm is owned by Marion Long,