Real estate investment in Northern Michigan can be a passive or active means of growing personal wealth. As housing costs appreciate, simply owning a home in the area is a great way to invest in the future. (Click here to see Northern Michigan's finest collection of vacation rentals)
But some people wish to be more involved in their investments. For those who love the fast turn around, manual labor, and problem-solving, house flipping is a popular and fulfilling form of real estate investment.
HGTV popularized the art of house flipping by portraying this DIY renovation business in a way that seems highly accessible. As a result, there’s been a surge of ambitious investors entering the market across the country. Competition to buy undervalued homes has increased, but there’s still an opportunity for the careful, savvy investor to make a nice living or side income.
Like any investment, house flipping comes with many financial risks. If you want to get started, begin by doing your homework. Research best practices and perhaps even find an experienced investor willing to mentor you. No matter how simple it sometimes looks on HGTV, house flipping is a skill you should study carefully before you jump in head-first.
Among the many things, you should learn: when is the best time to buy a home in Northern Michigan?
It’s generally recognized that summer is one of the most expensive and competitive times to buy a home. But as we round our way into fall, is now the right time to invest in a fixer-upper?
While no season ever comes with the guarantee of finding a great opportunity, fall indeed has several noteworthy factors going for it.
Benefits of Buying a Northern Michigan Investment Home in the Fall
Kids are Already Back to School
Summer break is the most popular time for families to move. It makes moving to a new city simpler on everyone by avoiding transitioning kids to a new school mid-semester. As a result, summer housing prices can be higher because of the immense competition for new houses.
However, despite a spike in the number of homebuyers during the summer, many properties inevitably don’t get sold. As sellers enter the quieter selling season of fall, those families may choose to lower their selling price or settle for a lower offer, which opens an opportunity for house flippers.
The Holidays are Approaching
As of late fall approaches, the holiday season becomes imminent. Between travel, buying gifts, and decorating, it can be a stressful season to try to sell a home. But sometimes it must be done anyway.
In those cases, urgent sellers may position their home at a lower selling price simply to get out of the house before the seasonal holidays come into full swing.
Work During the Coolest Months of the Year
In Texas house flipping, working out in 100+ degree temperatures comes with the territory. Renovating a home in the summer is not an easy task. One of the benefits of buying a fixer-upper in the fall is saving your physical labor for some of the coolest months of the year.
Buying a foreclosure in the fall means you’ll likely work on it during the fall and winter, which in Northern Michigan means cool, comfortable temperatures. You can leave the electricity turned off while you do the hard labor, without enduring the backbreaking heat you might experience doing the same work in the summer.
Discount Construction Tools
According to Popular Mechanics, one of the best times of year to buy power tools is the fall. Many of the tools you may need to repair your investment property can be found priced between 40-60% lower than most other times of the year. Any construction discount improves your margins, which means more money in your pocket when the house finally sells.
Prepare for the Most Optimal Selling Season
Texas and other southern states experience less month to month real estate price fluctuation than areas with more distinct seasons. However, there are still distinct buyer and seller seasons to keep in mind as you enter the Northern Michigan market.
According to Housing Wire, most homebuyers enter the market between May and August. If you want to resell your flipped home during that peak season, buying a home in the fall gives you months to prepare. It’s a generous window of time for refurbishing the house so you can bring it back to the market and hopefully sell for top value.
Once you find the right home to flip, here’s a checklist of tasks to remember as you prepare to sell the home. Good luck!