Flipping a house is a common practice among DIY enthusiasts and those wanting to make a quick profit in a hot housing market. Flipping land is also another way to improve and sell an existing property by investing your own time and money. While both options share similar benefits, they are better for some situations than others.
Here is a basic rundown of the major differences between flipping a house and flipping land:
Convenience
One of the greatest advantages of flipping land is that it rarely requires a property visit. You can find eligible vacant property all over the country from the convenience of your own home without needing to travel. Most successful land-flippers use search engines and other internet resources to find good deals.
Flipping houses generally limits you to a specific geographic location. This means a smaller pool of potential properties. Also, buying and selling a house, regardless of its condition, requires visiting in person or via proxy. You can still use the same convenient techniques, but you will spend more time on logistics.
Profit
Flipping land and flipping houses both come with large potential ROI (return on investment). However, flipping land yields a bigger profit because the purchase prices are so much lower. Vacant and undeveloped land sells for much less than land with existing structures, especially in less heavily populated areas.
Your renovation costs and profits for any flip will depend on many factors. However, with a lower overall up-front cost, land flipping yields a higher ROI.
Income Stream Potential
Making money by flipping property doesn’t end at the sale. Both flipping houses and undeveloped land have the potential to generate ongoing income through seller financing and working with lenders. If you buy land for cash and then sell it with terms, you can collect monthly payments for years. The same goes for houses both for renting or selling. While the costs going into them may differ, both flipping options have equal opportunities for generating ongoing income long after the sale.
Is flipping land or flipping houses right for you? Consider these three points of comparison when doing your research to make the best decision for your situation.
About the Author
Ryan Mandigo
Ryan Mandigo is an award-winning professional broker associate with Omni Real Estate. Originally a native of New Hampshire, his love of real estate began 30+ years ago while swinging a hammer on a framing crew. He has always had a strong passion for helping people, whether it be assisting a couple in purchasing their first home, finding a home that fits a growing family's needs, or downsizing for those with an empty nest. He strives to build strong personal and professional relationships with being a true believer in the power of positive thinking and always willing to lend a helping hand.
He is also a co-founder and board member of the Swing Fore the Kids organization. A local charity that is 100% nonprofit and their sole purpose is to help needy children and young adults within Horry County communities. He finds great satisfaction and pleasure in seeing how working hard for a great cause and raising funds can help others in need. He is also on the Board of Directors for the Waccamaw Youth Center in Conway, where their mission is to provide at-risk youth "A Place To Call Home"
When he is not working, he enjoys music, working around the home, spending time with family and friends, turning wrenches on vintage vehicles, getting some wind therapy on the Harley or chilling with their dogs.
Some quotes he lives by - "Do what you like and like what you do" - "You have to be odd to be number one" - "Dreams don't work unless you do" And one of his favorites. "Positive and enthusiastic thinking in all you do"
