Property flipping is a real estate investment strategy where investors purchase a property, typically at a lower price, with the intent to quickly sell it at a higher price for a profit. The property may be bought in need of renovation or improvement, and the investor adds value by making repairs, upgrades, or simply holding the property during a period of rising market demand. The goal is to sell the property within a short period, often within months, to capitalize on price appreciation.
Key Characteristics:
- Short-term investment: Flipping is focused on making quick profits rather than holding the property for long-term rental income or appreciation.
- Renovations or improvements: Investors often renovate or make improvements to increase the property’s market value.
- Timing-sensitive: Success in property flipping depends heavily on market timing, as investors aim to sell the property at a higher price during periods of strong demand.