Jasz
VIP Contributor
The idea is simple: buy cheap houses in high-income neighborhoods, and flip them quickly for more money than you spent to buy.
The theory makes sense on paper, but does it actually work?
Flipping in high-income areas can be lucrative for real estate investors if you're willing to put in the time and money required to get started. But if you're not willing to do that work and aren't patient enough — or if you don't have enough capital — then flipping may not be worth the effort.
In my opinion, it does pay off in the long run. The reason is because you are buying at a discount and selling at a premium which means you will be making more per sale than if you were just renting out the property.
The reality is that most people who want to buy and sell homes don't want to wait around for years until they can sell their home for fair market value. They want instant cash flow so they can move on with their lives, pay off debts and start building wealth again.
In order to do this quickly, you need to buy at a discount and then sell at an even higher price than what you paid for it (hence why flipping homes works so well). This also allows us to build equity.
The theory makes sense on paper, but does it actually work?
Flipping in high-income areas can be lucrative for real estate investors if you're willing to put in the time and money required to get started. But if you're not willing to do that work and aren't patient enough — or if you don't have enough capital — then flipping may not be worth the effort.
In my opinion, it does pay off in the long run. The reason is because you are buying at a discount and selling at a premium which means you will be making more per sale than if you were just renting out the property.
The reality is that most people who want to buy and sell homes don't want to wait around for years until they can sell their home for fair market value. They want instant cash flow so they can move on with their lives, pay off debts and start building wealth again.
In order to do this quickly, you need to buy at a discount and then sell at an even higher price than what you paid for it (hence why flipping homes works so well). This also allows us to build equity.
