Flip Houses In Los Angeles?

Question

Ok so I'm 23 years old my mom is a realtor and we have 4 different equity lines on different houses totaling 700K. I would like to know if anyone thinks flipping houses in the los angeles area would be a lucrative investment in todays market. My mom knows how to fix up a house meaning what to buy and get great deals on different upgrades and we know a few people that can do the work for us. But I think shes soo nervous to use the Equity lines. My mom is very conservative where I am very aggressive and always looking for ways to make money. I mean if we are buying cash how risky can these deals be? If we get it at around 50-75 cents on the dollar and then rehab upgrade and resell withing 30-45 days? Do you think this is realistic?

Answer 1

hah. idiot. you'll lose all your money.

Answer 2

Really depends on how bad of shape the house is in, how fast you want to flip them.... where the house is....

Do you have to flip them or can you rent them- lots of people are renting on the east coast instead of flipping right now.

It's not a sure thing.

I personally would try 1 house to start with and see how it goes.  There was a 23 yeal old man on Dr. Phil whom bought like 10 houses to fast, without thinking, in real bad shape in LA and he lost them all and all of his money- owes millions.  Because he bit off way more then he could chew.

Answer 3

Listen to your Mom.  Be conservative in this market.  

House flipping works much better when it is a seller's market because there is high demand and people can get the loans they need to buy houses.

Right now people are struggling to get financing and everyone expects a huge discount from the asking price and expects help with the closing costs.  You'd have to get a house for 50% of current market value (or less) in order to have a shot at getting it sold quickly.  This market really sucks for flippers...

The equity lines put those houses at risk if something happens with a flip.  I'd be nervous about using that money too...  

good luck!