Question:
“I was reading some discussion of how prevalent flipping houses is now. Do houses ever get bought by people looking to “flip,” who then upgrade them and sell them to other people looking to flip, who then upgrade them again?”
Answer:
Rarely.
Most house flippers typically operate on minimum profit margins. If you add a middleman who takes more than a nominal “piece of the action,” the numbers aren’t going to work.
I did recently see an unusual exception…
Someone bought a house in north Pacific Beach, completely gutted it—we’re talking studs only and no kitchen or baths—and resold it for a lot more than they paid. I’m not sure, but they may have sold it to another flipper.
Now don’t think you can go out and buy a house, take a sledgehammer to it, and resell for a profit. The P.B. house was really a rare exception.
