There’s no better way to breathe new life into a home than by flipping it. Both exciting and challenging, flipping properties makes older homes more competitive, boosts your potential profit, and diversifies your real estate portfolio, all while helping you gain plenty of valuable real estate experience.
If you’re looking for your next real estate investment, consider flipping luxury houses in Las Vegas. Ready to learn more about flipping homes? Continue reading below.
They say that real estate is one of the best investments that you can make and it’s true. Real estate offers better returns (more than bonds and the stock market), appreciates naturally over time, and offers beginners multiple ways to get started. Aside from rental properties, real estate investment groups (REIGs), and real estate investment trusts (REITs), you can enter the fold by flipping houses.
What is house flipping?
House flipping is the purchase of a fixer-upper or a home below market value to renovate it for sale at a higher price. This lucrative investment strategy promises high investment returns because of the reliable demand for housing and the renovations that add value to the property.
Even though starter and distressed homes are the most flipped properties, there’s also a market for high-end homes and even luxury estates that’s worth exploring. Since most of the focus in house flipping goes to low-end and midrange properties, there is less competition in this arena.
Moreover, flipping luxury homes can lead to more savings and better returns in your investment. That is because, with luxury properties, there’s typically less renovation and rehabilitation work involved.
Holding Real Estate vs. Flipping Luxury Properties
Now comes the real question: Is it better to flip houses or hold on to the property?
Choosing the best real estate investment strategy depends on your investment goals, the current real estate market, and the opportunities it offers.
Holding real estate is exactly what it sounds like—buying real estate and keeping it for an extended period. This common long-term investment strategy typically involves renting it out until you decide to sell it in the future.
By holding on to a real estate property, you can enjoy a consistent stream of passive income over a long time. That, however, depends on whether you’re able to keep the home occupied. You might also have to play the role of a landlord for the time being, which has its own set of challenges.
If you have no intention of holding on to a property, flipping houses in Las Vegas is the way to go. However, you need to act quickly in order to maximize the return on your investment and keep other costs such as taxes and utilities low. The time it takes to buy, flip, and sell a property varies per project, but on average, the entire process can take as little as six weeks to almost a year.
When you flip a luxury house, you won’t have to deal with managing the property. As soon as you find a buyer and the transaction closes successfully, you can move on to your next house flipping project.
Las Vegas Housing Market: 2022 Forecast
Located in Southern Nevada, Las Vegas is a world-famous city known for its many shopping, dining, entertainment, nightlife, and business opportunities. It’s the most populous city in the Silver State, with a local population of approximately 641,900 people as of 2020. Las Vegas is part of the Las Vegas Valley metropolitan area, which is considered as one of the fastest-growing metros in the country.
The demand for Las Vegas real estate is high and it shows no signs of slowing down. More people are looking to buy and invest in Las Vegas real estate, with many of them coming in from out of state. The relatively low interest rates, strong economy, and reasonable cost of living are what fuels buyers to grab prime real estate now before it’s too late.
Home prices in Las Vegas are at an all-time high. The median home price is now at $450,000, after increasing by 26.8% from the previous year. Homes for sale in Las Vegas usually spend only 17 days on the market and typically sell for about 1.3% higher than their listing price.
Las Vegas’ luxury market, in particular, continues to exceed expectations. According to the Las Vegas Review-Journal, a grand total of 1,557 luxury properties in Las Vegas were sold— a new record high. Prices for Las Vegas luxury real estate now hover at $2 million after increasing by 25% in 2021. With the continuous demand for Las Vegas real estate, those looking to sell properties in this thriving area have plenty of opportunities to earn top dollar.
Why Las Vegas is a Popular Place to Flip Houses
The numbers don’t lie: Las Vegas real estate is hot, and it’s getting even hotter. It continues to be a seller’s market, fueled by high demand and a low housing inventory. And it’s this strong and robust real estate market that makes Las Vegas themarket for house flippers.
In 2018, the Las Vegas Review Journal named Las Vegas as one of the top cities for house flipping. The same could still be said four years after the report; about 828 homes were purchased in Las Vegas in the first half of 2021 by “iBuyers.” They make minor repairs to resell the homes as quickly as possible.
But apart from the latest market trends, Las Vegas’ selection of housing is another factor that makes it popular among house flippers. The market has everything, from cheap foreclosures to upscale properties. If you want to try your hand at flipping different kinds of residential real estate, Las Vegas is the place to be,
12 Essential Tips to Flipping Luxury Houses in Las Vegas
When it comes to flipping houses in Las Vegas, research and preparation go a long way. A combination of both will help you maximize your profits, save resources, even handle multiple house flipping projects at the same time. thousands of dollars. Below are 12 keys to successful house flipping in Las Vegas.
- Find a good location
- Understand the local real estate market
- Take note of the costs
- Work with a trusted and reliable real estate agent
- Be prepared for any setbacks
- Start with homes that are easier to update
- Choose a sophisticated, yet neutral design
- Include high-end finishes and features
- Take note of the home’s original style
- Consider adding square footage
- Have a solid marketing strategy
- Build your team
The key to a successful luxury home flip is in its location. A desirable neighborhood that’s sought-after, continuous in its growth, and has stable to rising home prices is most ideal. Potential buyers will gravitate to such as a community, which is why you should invest there.
So, how can you tell if the neighborhood has great home flipping potential? First, evaluate its current property values. Are they rising or at least stable? How are the comparable homes faring? Second, identify plans for the area. Are there any new developments or improvements in the pipeline? These projects could be anything from real estate to public amenities and utilities, some of which could boost local home values. Third, research the nearby school districts, shopping areas, restaurants, and as well as local recreational and entertainment options.
It helps to put yourself in a homebuyer’s shoes to gain additional perspective on what makes a “good” location. Remember: your ultimate goal is to sell the flipped home eventually. It only makes sense to invest in a neighborhood potential buyers would be interested in.
Research is crucial in helping you boost your home’s value and sell it for more. That’s why it’s important to understand the local real estate market and see what buyers are searching for in a luxury home. What are the features that buyers deem most important? Are there certain items or amenities that are more appealing than others?
For luxury home buyers in Las Vegas, two of the main features that they look for are functionality and purpose. According to the Las Vegas Review-Journal, indoor and outdoor spaces, luxurious spa features, and self-care amenities are a must-have among buyers. Flexible rooms, home gyms, and dedicated home offices are also popular—a by-product of the COVID-19 pandemic, which as forced people to stay at home. Home offices are especially trendy as more companies are offering hybrid or remote work arrangements.
Now that you have a better idea of what buyers look for in a home, you can make the necessary improvements or add the upgrades that will surely entice buyers.
Of course, you’ll spend some money when flipping a house. There’s the acquisition cost, then renovation expenses, plus the carrying costs, among others. The acquisition cost, which is your first expense, is the amount paid for the purchase of the property. And just like the closing of any real estate transaction, the closing costs include the title fees, property taxes, and transfer taxes.
The renovation cost itself is another expense that you’ll need to be financially prepared for. It’s estimated to be around 10% of the home’s purchase price. However, the amount still depends on the repairs the home needs (it could range from minor fixes to extensive home repairs) and the kind of upgrades you decide to add.
Crunching the numbers before embarking on a home flipping project ensures that you will make a sizable return on your investment.
While house flipping may be an exciting and profitable investment, it’s not without its challenges. Flipping a house is a huge project with many moving parts. That’s why it’s best to enlist the help of a real estate agent who has experience with flipping houses in Las Vegas.
An expert real estate agent will be there to guide you throughout the process of flipping a house from start to finish. Their local knowledge will help you understand the current real estate market, the best time to sell, and the right listing price, to name a few considerations.
If you plan on flipping luxury homes, make sure that the agent you work with specializes in luxury real estate as well. Flipping a luxury home is different from flipping a regular property.
It’s not uncommon to encounter delays, complications, and other issues when flipping a house. Sometimes, materials don’t arrive on time. Some renovation work or upgrade may also require extra care and attention to finish. Laborers might take a day off because they’re unwell, or the weather might not be cooperating. No matter how much you prepare, chances are you’ll hit some snags.
While it’s impossible to control these setbacks, what you can do is to prepare for them. Talk to your real estate agent and hear their input on how these issues can be avoided. Be open to adapting and finding other solutions that will put you right back on track.
When searching for luxury houses to flip in Las Vegas, you’ll find a wide variety of options that come in every shape, size, and style. But some homes may end up being too much work, draining your time and resources.
Luxury homes are among the best kinds of properties to flip because they tend to be in better condition. In most cases, what these properties usually need are brand-new flooring, high-quality furnishings, or even a kitchen remodel. However, it’s still best to assess the property before committing to it and make sure that it has no structural, plumbing, or electrical issues.
Consider homes that are older and unadorned as well. Adding more details and features to its design, along with a fresh coat of paint, will instantly give it a new look.
As you flip a luxury property, always keep your target market in mind. It’s essential to appeal to a wide audience of luxury home buyers. Keep your home’s interiors stylish and versatile by using shades of popular neutral colors like gray, beige, ivory, and white.
A luxury home is anything but standard. Since you are flipping a luxury home, the finished product needs to impress buyers. Show them that it is the property they’ve been looking for! Maintain the home’s luxury factor by choosing high-end materials like porcelain, hardwood, marble, and stainless steel. Consider adding features that elevate the luxury property as well, such as high ceilings, entertainment rooms, or a fireplace.
You can take it up a notch by adding smart technology to the property, which is now becoming a must-have. Consider adding motion-sensor lights, smart thermostats, and home security systems.
One of the biggest mistakes that house flippers make is remodeling the house based on their personal preference. The result is a mish-mash of aesthetics, which can turn off discerning homebuyers. Remember that the work you intend to do should complement or improve the home’s original style. If the property sports a traditional interior design, for example, use elements like wood, ornamental details, and a symmetrical arrangement to create a warm yet luxurious look.
When it comes to luxury properties, you can never have too much space. Luxury home buyers want to see how every space in the property is maximized. You can even leverage the unfinished spaces, from having a fully-finished basement to repurposing the extra garage space.
Marketing plays a huge role in selling your flipped luxury property. When done right, you can generate buzz and find interested buyers in no time. The most effective way to market your new and improved luxury property is online. Whether it’s through a website or on social media, you can easily reach your target audience there.
It’s impossible to successfully flip a house on your own. That’s why it’s important to form a team of knowledgeable professionals that can help you maximize your profit. Aside from your real estate agent, you’ll need a contractor, an interior designer, and a lender on your roster.
Get Started in Luxury Home Flipping with an Expert
Are you thinking about venturing into the world of flipping homes in Las Vegas, Nevada? Let an experienced real estate agent like me, Juan Rubio, show you the ropes. As one of the top real estate agents in Las Vegas, I make sure that my clients get the best possible outcome from every real estate transaction.
My streamlined fix-and-flip approach has successfully closed deals that satisfy both parties. Luxury home buyers get an opportunity to hand-pick the upgrades and finishes they want as the home is renovated while sellers can rest easy knowing that their home is already sold before it’s even listed.