Truth be told, I have never been a "flipper". The shortest time I have ever held a piece of real estate was 24 months, and that was only because I wanted a bigger house. In order to get the bigger house the banks wouldn't let me keep the house I had.
So are there still "deals" in real estate? The answer depends on your perspective. As a buy an hold investor, right now the answer is a resounding yes. If you have 20-30% to put down call me. I will come up with a handful of properties that will be positive or at least break even cash flow the day your new tenant moves in.
My first three rentals were break even cash flow but the tax benefits made them nicely cash positive at the end of the year. Being able to generate positive cash flow now makes me very excited. There are more deals than I have time to manage myself.
Around the corner from where I live there is a couple who are "flippers". They don't flip homes along the coast anymore though. They have moved inland quite a bit due to the changing market. Seven houses over from them there is a couple that own a small apartment building. Both of these couples make all of their income from real estate.
Since this blog is focused on helping you create long term income or as Jordon Adler calls it, "Beach Money", I think it is best if we talk about buy and hold instead of "flipping". The truth is, someone needs to fix up those old unwanted homes so people can live in them, but I would rather see people get a deal and put some "sweat equity" into it and living in a better home than they normally would be ably to afford instead of "flipping" it and hoping for a "quick buck".
When you buy and hold, you have a great investment for a lot of reasons. Most importantly, if interest rates climb, or inflation takes off, people will not be able to buy as easily, putting you as the landlord in a great position to raise rents and make more money.
There is of course the fear of "rent control". This is where the local government attempts to keep housing "affordable" by limiting what landlords can charge. The reality is that rent controls hurt everyone. Lower rents mean lower property values which mean lower taxes to the city and state.
Over the long term rent controls normally don't make it, so unless they are already in place where you are considering buying property, I wouldn't worry about it. Besides if you get in at break even or positive cash flow now, rent controls won't kill your goose.
So yes, there are still deals if you are willing to be a landlord or if you are willing to dig a little deeper to flip. The first question is "Why are you buying real estate?" and from there, I can help you find a deal.
If you want to create long term income and wealth, then yes there are still deals to be had. If you are looking to get in and out quick, there is a short term danger of equity funds and banks slowing the price appreciation in many markets. If you know your market well, you will know a deal when you see it.
