Is Now a Good Time for House Flipping?
Posted in Mortgage News:
House flipping has been around for many years and continues to be a popular way for people to make money—often while doing something they love. Buying a house at a low price, fixing it up, and selling it for a higher value is an enticing prospect. But is now the right time to be flipping houses, or is it too risky?
House Flipping Now – Too Risky or Worth the Risk?
Experienced house flippers may find that now is actually a great time to purchase a bargain property and flip it for a profit, especially with home prices falling in some parts of Canada.
In a hot real estate market, flipping houses can still be an affordable and often lucrative way to take advantage of market opportunities. Despite the impacts of COVID-19, housing investment has remained strong. In fact, several Canadian cities—including Hamilton, Windsor, Guelph, Kingston, Calgary, and Gatineau—have continued to see solid returns in real estate.
How Do House Flippers Buy Properties?
For those who flip homes full-time, short-term financing through private lenders is a common strategy. These loans give investors the capital needed to purchase and renovate properties, and in many cases, even cover financing for the full project.
Short-term private lending allows flippers to pay off maturing loans or reinvest into new projects— making it a popular financing method among seasoned real estate investors.
What Can Investors Do Instead of Selling a Flipped Property?
While many house flippers focus on renovating and reselling for profit, some choose to hold onto the property and rent it out instead. With rental prices at all-time highs in many parts of Canada, and more people renting due to affordability challenges, renting has become a profitable long-term option for many investors.
House Flipping and Cash Flow
Cash remains king in real estate investing. Even if your capital is tied up in a current flip, it doesn’t mean you’re out of opportunities. Investors can still access available equity through strategies like blanket mortgages or cross-collateralization to fund another purchase at a reduced cost—allowing them to flip again and expand their investment portfolio.
Is House Flipping Right for You?
That’s a question only you can answer. But if you have some experience and understand the risks and rewards, the Canadian real estate market still offers potential. With falling prices in certain areas, now might be an ideal time to start—or continue—flipping homes.
Working with a knowledgeable mortgage broker can help you secure the right financing and uncover lender options that suit your specific project.
Call us at 403-460-7707 or Contact Us online to learn more about financing your next flip.