The Lund Team Real Estate Blog

Anyone who watches Bravo’s TV show “Flipping Out” has noticed the show’s star Jeff Lewis has taken a break from flipping properties (buying low, renovating, and then selling for a profit) and is focusing more on his design business.

In the height of the market of 04’ and 05’ when property values were increasing every month, flipping a property had few risks. Not only were you adding value with every dollar you spent, but time was on your side. As soon as property values started to sharply decline the money flippers were putting into homes was to keep the value from falling below the original purchase price. Needless to say, flippers left the scene.

Well, they’re back!

Here is an example of a flip in South Oceanside that could mean a substantial profit for the sellers if it sells close to the list price. 815 Whaley St., Oceanside was listed on 1/30/09 for $299K. It was advertised in the MLS with the following remarks, “BANK OWNED!! PROPERTY NEEDS MAJOR WORK. MISSING FLOORING, BATHROOMS INCOMPLETE, ETC. MOLD REMEDIATION HAS BEEN COMPLETED.” It closed escrow on 09/04/2009 for $280K and came back on the market this previous weekend for $550K. Judging by the pictures, the property has gone through a major renovation. Depending on the amount of cash put into the renovation it appears the flippers may stand to make a sizable profit.

The moral of the story: If you have the cash to put into a renovation and the heart to deal with contractors for an intense few months, it may be your time to get back into the market!