The housing market is heating up and real estate investing is surging but what types of properties should investors be honing in on for the fastest and most profitable flips as more buyers jump into the market?
Normally, investors are taught to stick to the standard, bread and butter 3 bedroom single family home in order to maintain the biggest pool of re-sale buyer for their real estate investing flips. This may still be smart advice and be the way to go in many areas of the country, though this rebound presents a few different twists that can be capitalized on to.
As the economy comes back there are likely to be more divorces and separations. Men may become targets as their wealth comes back, motivating wives to pick up the phone to the best divorce attorney they can find, while others will just finally be able to afford to call it quits and get their own places. This is likely to create a big pick-up in demand for smaller housing units. This may present great real estate investing opportunities in studios and one bedroom apartments as well as smaller two bedroom single families. How are the relationships of those couple you know? Is everyone getting along too well? Any drama going on, on Facebook for you to capitalize on with a few well timed posts and announcements of new deals you have available?
Luxury condos are another sweet spot for real estate investing in some parts of the country. Many celebrities are still downsizing and these are a favorite property type among cash rich foreign investors and vacation home buyers.
There is no ignoring the swarm of hungry ‘buy and hold’ investors wading into the market and while you may not want to join them you can certainly cash in by flipping homes to them. They’ll buy whichever properties promise the largest cash flow spreads every month. Many are chasing singe families as their main real estate investing strategy but 2-4 unit multifamily homes can produce more income, higher returns and be a lot easier for them to finance than other property types.