“Supply is so far behind the demand we see across the country and there are many reasons for that. The result has been a dramatic increase in home prices in recent years. “
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And while Fix and Flip has its undisputed appeal, buying a pre-existing home comes with many downsides, especially in the current real estate market. While it used to make sense to purchase a distressed property at a reduced price, this is no longer the case knowing that after considering the renovation costs, significant margins would be achieved.
Parker said, “Doing this today is more difficult because you have to pay for these distressed homes yourself. Add to that the fact that the construction costs have been relatively high in the last seven months, and that makes it really difficult to find these limit value properties. “
Existing properties also have the habit of causing nasty surprises such as unforeseen structural problems or even hidden mold, which only delay the project or lead to significant cost overruns.