Fixing and Flipping Homes in Tucson?
June 23, 2009 | By Kelley Koehler | Filed Under Home Buying, Home Selling
I had an inquiry the other day from someone about to move into Tucson about potentially fixing and flipping homes along the Valencia corridor in Tucson – basically, the Southwest and the South side.
I gotta tell ya – that’s something I wouldn’t do right now, at least not operating in the open resale market. I think the idea was to pick up a foreclosed home at a steep discount, make repairs, and resell it for profit.
The problem is that in those parts of Tucson, pretty much the only thing selling is the foreclosures. If you find one at a crazy low price, I’d bet it is in terrible shape too. Which means even more cash you have to put into the thing.
Not to mention that prices over the last year in that area have fallen – on average – 3% a month. So not only do you have to recoup your repair costs, your purchase costs, the holding costs, and the selling costs in order to just break even – you lose money just owning the thing over a very short term because of the declining market.
It’s not a bet I’d be taking right now.
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- The Daisy Chain (June 9, 2009)
I was working with a home buyer last month who needed to sell their home in another state before purchasing here. Luckily, their home back East was already under contract and scheduled to close soon.
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Posts like this are a major reason I follow your blog. You’re not a real-estate cheerleader (they’re out there). Just the facts with some sensible observations.
Scott – I appreciate that.