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Lehigh Valley Real Estate Short Term (Buy & Flip) Investing?

Buy It, Flip It Investment Image

What is a Buy & Flip strategy in Real Estate Investing?

The Lehigh Valley Buy & Flip Investor's Strategy is to buy the property, make repairs and/or improvements and sell the property as quickly as possible (1-3 months) without living in it themselves or renting it to a tenant. There are variations on this approach, and we'll cover those later in the discussion.

The Short Term real estate investor needs to have a stock market Day Trader mindset. Find a property that the investor believes has unrecognized value. Then do the homework (Comparative Market Analysis neighborhood study, estimate closing costs, repair/improvement costs, financing costs, etc.) to create a project plan with a milestone that defines when and at what price the property will be sold. And finally, buy it, fix it and flip (sell) it to a new owner in the shortest time possible. A general rule-of-thumb is to create a plan to earn a profit of approximately $3000-$5000 on each $50,000 dollars (adjusted for repair/improvement costs) of the property's original sale price.

What are some considerations for a Lehigh Valley Buy & Flip Investor?

  • Keep in mind that there is a strong correlation between the price you pay and the profit you earn on the sale of the property.

  • Contact your bank or lender in advance to learn how they will be willing to lend you money for the purchase and repair of the property. Mortgages on properties NOT occupied by the owner often come with a slightly higher interest rate and a larger down payment (between 20-30%) requirement. Additional options are private lenders, LLC investment agreements, etc.

  • Contact and interview your contractor/trades people (electrical, plumbing, etc.) in advance to determine their availability, hourly rates, etc.

  • Contact the local government's codes & inspection office and ask for the most recent inspection report. Will you need to provide a "Clear & Clean CO (Certificate of Occupancy)" in order to sell the property?

  • Don't underestimate the cost of "time of ownership" mortgage payments, taxes, utility costs, etc. quietly increase your cost and eat into profits.

  • Assume that your best chance to sell your flip property quickly is to price it slightly lower than the neighborhood value. It is a painful mistake to believe you can improve the property to a profit.

  • Understand the Lehigh Valley Real Estate Market. Don't rely on national media. Even within the valley, there are local differences. The real estate market encompasses the larger cities like Allentown, Bethlehem, and Easton with many investment opportunities in each. Add in all the surrounding towns and municipalities and the differences include pricing, zoning and other specific municipal and county laws and regulations, plus financing considerations.

Want more information about Lehigh Valley Short Term (Buy & Flip) Investing?

Give us a call or contact us today.

Joe Finnerty- or -Joe Kaminski
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BHHS Fox & Roach REALTORS, Lehigh Valley PA
3101 Emrick Boulevard, Suite 101
Bethlehem, PA 18020
Main Office: 610-865-0033
FAX: 610-974-9430

Information is deemed reliable but not guaranteed. We are REALTORS® in the Commonwealth of Pennsylvania and affiliated with BHHS Fox & Roach REALTORS. We are not financial planners, tax advisors, or attorneys.

Lehigh Valley Investment Properties serves the following areas Bethlehem, Allentown, Easton, Forks Township, College Hill, Plainfield Township, Washington Township, Bethlehm Township, Bangor, Bushkill Township, Nazareth, Tatamy, Stockertown, Hellertown, Lower Saucon, Freemansburg, Pen Argyl, Williams Township, Palmer Township, Hanover Township, Walnutport, Lehigh Township, Wilson, Wind Gap, Mt. Bethel, Portland, Roseto, Allen Township, Northampton, Bath, Moore Township, Catasauqua, Whitehall, Macungie, Lynn Township, Slatington, Milford, Emmaus, Coopersburg, Center Valley, Springfield Township, Weisenberg, Orefield, Trexlertown, Breiningsville, Upper Saucon, and Saucon Valley. Lehigh Valley Foreclosures, Sheriff Sales, HUD Homes, Short Sales, and Auctions.