North Dallas Homes: Real Estate Investors flipping over 2012

The Dallas real estate market continues to be an opportunity for house flippers. Investors keep scooping up the bargain homes because of the extension of the FHA temporary waiver through 2012.

Previously, FHA regulations did not allow mortgages on homes owned by the seller for less than 90 days. In 2010 this rule was waived to allow 'flippers' to purchase and renovate distressed properties ( mostly foreclosures) and then resell them to the many picky buyers who want a move-in ready house.

This has helped the housing market and the feds have actually made a smart move by extending this waiver through the end of 2012. Fortunately, they've kept some of the restrictions to prevent previous mortgage frauds and disasters. These FHA backed sales are subject to a property inspection, buyer credit and background approval, and other restrictions.

Since the 2010 waiver, there have been more than 42,000 properties purchased with FHA backing that previously would not have qualified due to the 90 day seller restriction. That represents more than $7 billion in sales that may not have happened.

Eager buyers are fueling today's demand for renovated homes at low interest rates. And in today's market, an investor can buy, renovate and resell a home in 90 days or less. But if the sales price is more than 20% over the previous purchase price, the flipper must document the expenses incurred in the renovation and repair of the property. Provided the investor knows what they are doing, 2012 continues to be a great market for flipping.

Source: http://lydiaplayer.blogspot.com/2012/02/real-estate-investors-flipping-over.html

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