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
Natalia San Filippo
Greetings from beautiful Naples Florida! Having grown up in Siberia, in a challenging environment I have a deep appreciation of our wonderful Southwest Florida climate and lifestyle. The journey that led me here has fueled my drive to be the best at everything I attempt. My natural enthusiasm for my work is contagious, and clients know that I am "giving my all”. My deep dedication to my family that includes my two adult children and my four fabulous grandchildren. My family reminds me every day that considering family first in one’s life requires an exceptional "home base” for everyone to gather for events and holidays. Everything in my life has equipped me to be a fabulous realtor at Premiere Plus Realty. Naples is cosmopolitan and international harmonious environment, positive energy and lifestyle. As a certified yoga instructor, I believe in and understand the importance of balance in one’s life. It’s through my yoga practice that I have achieved peace and harmony in my life. It’s this peace, harmony, and enthusiasm that I wish to pass to my clients. My goal is to continue to serve you!!! It is my mission! It is my goal! Let’s get to work together! Natalia Realtor, specializing in Residential sales, New construction, seasonal rental, VA homes, First home buyers, listings, sales. Member of Miami and Stella MLS. I service Naples, Bonita Estero, Marco Island & Ft. Meyer's as well as SW Florida. I appreciate referrals and I help with referrals in other States.