Flipping Real Estate in La Jolla
House flipping is the practice of purchasing a home, improving it with cost-effective renovations, and then putting it back up for sale at a higher price in order to make a profit. In La Jolla and other cities in San Diego County, the practice has been booming. House flipping broke pre-recession records in 2013 when investors flipped 301 houses in May.
By snatching up foreclosures, short sales and mortgage defaults at ultra-low prices, investors have played a significant role in the housing market's comeback. After plummeting during the recent recession, home prices in La Jolla have now reached a five-year high. Although there are fewer deals available for investors today, profit can still be made flipping houses in La Jolla and the surrounding communities. According to San Diego-based DataQuick, around 30 percent of homes purchased in the region in June 2013 were completed by investors.
Professional house flippers admit that they need to be extremely aggressive to be successful in the tight La Jolla housing market. Investors need to be ready to move fast when a deal becomes available. That can mean having cash on hand to seal the deal quickly without having to waste time dealing with a bank.
House flippers also benefit by having a reliable contractor in tow who can deliver projects on time and on budget. Knowing which renovations offer the best return on investment is critical to success as well. In La Jolla, functional upgrades combined with outdoor living amenities are particularly cost-effective. A fresh paint job, stylish flooring and curb-appeal-enhancing landscaping is considered essential.
Successful investors know that flipping a home for the best price can take time. Some investors choose to rent out properties to cover their costs and give them time to wait until prices rise further. In today's La Jolla real estate market, well-informed house flippers are still enjoying a significant amount of success. Interested in flipping yourself? Contact a local real estate agent for additional tips and expert advice about the La Jolla market.