The writer is a Vancouver mortgage broker with experience in bad credit mortgage in Canada applications.
Most opportunities for flipping properties are at the lower to middle end of the price range. The lower end of the price range is, of course, relative to your area. ‘In California and New York, it may be $250,000, while in Texas $75,000 to $100,000 represents the lower end of the price range.
There are three primary reasons for concentrating your efforts in this price range. The first reason is that there tend to be many more opportunities available. Homes selling in this price range tend to be older and are frequently in greater disrepair than newer and more expensive homes. The second reason to focus on the lower to middle end of the price range is that there is a larger pool of buyers available to purchase these types of homes.
Many prospective buyers in the lower price range are younger couples, who may be first-time buyers, or working-class people simply looking for affordable housing. The higher up the price scale you go, the smaller the pool of buyers. Finally, homes in this price range are easier for you as the investor to afford.
Why tie up your capital in larger, more expensive homes that are harder to resell when you can buy smaller, more affordable homes? In addition, if you have a limited amount of investment capital to work with, financing will be easier to obtain on less expensive homes.
Vancouver mortgage insight is provided by Duncan Seward a registered Vancouver mortgage broker with TMG. He helps clients in North Vancouver, Surrey, Vancouver, Coquitlam, Maple Ridge, Burnaby and Langley with their mortgage questions. He is an expert in
BC mortgage matters. You can check out regular mortgage updates at his blog page Vancouver Mortgage Rates.