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Buy, flip, sell. It used to be easy money. But house flipping is changing in the Sacramento region. Josh Stech is the CEO of Sundae, a real estate investment company that tracks investment opportunities.”About 10% of all homes that are selling in the Sacramento market sell to an investor and not an owner occupant,” according to Stech. Stech says that number hasn’t changed much, but the deals are getting trickier, and prices have cooled.He encourages house flippers to think carefully about who is the potential buyer for a property and what are their likely payment options considering interest rates are hovering at 8%. Stech calls it the “bread and butter” house. Typically, that’s a three-bedroom, two-bath house in a good area.”I want a home that if push came to shove, somebody could buy all cash if they don’t want to get locked into an 8% mortgage. So, I’m looking for median price plus or minus 10 to 15%. That’s kind of the sweet spot, I think, moving forward,” says Stech. Stech’s biggest warning for novice flippers? Don’t base investment decisions on Zillow data from three to six months ago. “You may say, wow, this deal that just came across my desk looks like the one that worked really well six months ago. Let me jump into it, not realizing that a pretty dramatic shift is taking place,” Stech said.That said, Stech and Sundae still find the Sacramento region to be a strong investment region despite the cooling of prices.
Buy, flip, sell. It used to be easy money. But house flipping is changing in the Sacramento region.
Josh Stech is the CEO of Sundae, a real estate investment company that tracks investment opportunities.
“About 10% of all homes that are selling in the Sacramento market sell to an investor and not an owner occupant,” according to Stech.
Stech says that number hasn’t changed much, but the deals are getting trickier, and prices have cooled.
He encourages house flippers to think carefully about who is the potential buyer for a property and what are their likely payment options considering interest rates are hovering at 8%.
Stech calls it the “bread and butter” house. Typically, that’s a three-bedroom, two-bath house in a good area.
“I want a home that if push came to shove, somebody could buy all cash if they don’t want to get locked into an 8% mortgage. So, I’m looking for median price plus or minus 10 to 15%. That’s kind of the sweet spot, I think, moving forward,” says Stech.
Stech’s biggest warning for novice flippers? Don’t base investment decisions on Zillow data from three to six months ago.
“You may say, wow, this deal that just came across my desk looks like the one that worked really well six months ago. Let me jump into it, not realizing that a pretty dramatic shift is taking place,” Stech said.
That said, Stech and Sundae still find the Sacramento region to be a strong investment region despite the cooling of prices.
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This article was originally published by a www.kcra.com . Read the Original article here. .