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
Marsha Charles
Consistent top listing and selling agent receiving Chairman's Club award for superior sales achievement almost every year while associated with Preferred Properties, Inc. Consistently receive the International Presidents Premier award for sales volume since joining Coldwell Banker Realty and ranked in the top 1% of agents in Connecticut and Westchester County. In 2021 I received the International Society of Excellence award for sales volume in excess of $100,000,000. I have been named a Top Five Sales Agent for customer satisfaction since 2010 (longer than any other agent in Connecticut) and listed in Connecticut Magazine. Named one of the Top Agents in Connecticut by Real Trends since 2018.
I work with sellers and buyers and also have a strong understanding to needs of those who are relocating . Background and experience in advertising, public relations and photography offer creative and innovative marketing plans for sellers.
Realtor designations include: Graduate Real Estate Institute, Certified Residential Specialist, Certified Residential Marketing Specialist, and Pricing Strategy Advisor. Served as President of New Canaan Board of Realtors (two terms), Director (three terms) and currently serve on Professional Standards Committee. Named Realtor of the year by the New Canaan Board of Realtors in 1994and again in 2022.
Married and mother of other of four children who attended and graduated from the New Canaan School System, Member of New Canaan, Darien, Greenwich and Statewide MLS systems. Areas covered include New Canaan, Darien, Greenwich, Rowayton, Norwalk, Wilton and all of lower Fairfield County.
