San Francisco Bay Area Real Estate Market a Hot Option for House Flipping
PRWEB.COM NewswireSan Francisco, CA (PRWEB) July 29, 2014
San Francisco is one of the hottest real estate markets for making money through flipping houses, says leading full service real estate and property management firm, ACL Real Estate and Property Management. Homes that are bought and then resold within 12 months is called “flipping,” and with the housing markets recovering, this short term investment vehicle can actually bring in good returns for those with a risk appetite, the company adds.
According to a 2013 survey by online real estate firm, Redfin, San Francisco comes in at the first place among the US cities that are best for flipping, with San Jose and Oakland following close behind. The survey shows that investors can expect an average return of $194,600 from flipping houses in San Francisco, which is more than twice the national average of $90,200.
The growing popularity of flipping houses as a source of additional income has even led to the launch of a reality series on HGTV, called Flip it to Win it. The series follows six teams of investors as they compete with each other to make the most profits buying foreclosed homes and then reselling them for a profit.
“Buying homes at auctions and then renovating them to get a better asking price can offer significant margins to investors,” says a spokesperson for ACL Real Estate and Property Management. “But don’t confuse margins with profit because not only do the investors need to invest further in doing up the homes before they can sell them, they are currently waiting only a few months before reselling, without giving enough time for prices to rise significantly. This is especially apparent in San Francisco, where the real estate market heats up in spurts,” the spokesperson added.
However, this trend of flipping homes has recently come under fire, with city officials in San Francisco seeking new laws to be put in place for tax to be levied on multi-unit buildings being sold within five years of being bought. This legislation aims to prevent real estate prices from skyrocketing. This proposal is scheduled to be put to vote in November 2014.
The important thing to remember is that not every investor is as successful in making money from flipping houses. It also takes some insight into the real estate market and housing trends in the area to be able to make the right buying and selling decisions, ACL Real Estate and Property Management states.
About ACL Real Estate and Property Management: As one of the fasted growing full service real estate and property management firms in the East Bay and Peninsular regions, ACL Real Estate and Property Management has a proven track record in quality service and reliability. Apart from offering full-scale real estate brokerage, the company also provides comprehensive property management services to ease the process of selecting tenants, maintaining the home and ensuring timely rent collection for homeowners.
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