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The Positive Effects of Flipping Houses  

Article by Samantha Dawson

Flipping houses has had a negative connotation since the real estate bubble a few years ago. Some experts blamed rehabbing houses for the bubble and unclear media reports also did not help. While many were reporting about mortgage fraud, a lot of viewers saw it as if flipping houses was illegal.

Years later and now that the country is in a recession, real estate investing is again picking up. Some still doubt whether rehabbing houses – which by the way is completely legal – is indeed legit. Authority web sites such as RehabList.com say there’s nothing wrong with rehabbing houses. Yet will doubt RehabList and other sources, saying this form of investing brings only negative effects.

Among their arguments is that it is leading to an increase in the number of homes fixed by inexperienced rehabbers. The rise in the number of renovated houses is also likely result in an increase in the value of property and eventually in the cost of living in that area, they say.

From another perspective though, flipping houses can actually result in a chain reaction of positive effects for the community. First of all, it is true that an increase in the number of remodeled or renovated houses will raise the value of real estate property in a neighborhood. It could also lead to a higher cost of living. But that increase in expenses will be compensated by more funds for the local government and subsequently more projects for residents. How is this possible? Simple. Flipped or rehabbed houses will be get higher tax assessments and this will lead to more revenue for the local government from property taxes.

Based on what the police call the “broken window theory,” the more houses flipped by rehabbers, the lower the crime rate will be in that area. Under the theory, a piece of broken widow in an abandoned property entices vandals to break more windows. Before residents know it, vandals have already broken into the house and started using it for illicit activities like selling prohibited drugs or prostitution. If that house with a “broken window” is rehabbed, then it is saved from being a crime den.

Flipping houses can also spur economic activity in a neighborhood where many houses are rehabbed. Since crime is lessened, businessmen will be encouraged to open shops in a community. The pleasant appearance of houses – and the neighborhood in general – will make the area appear conducive to business opportunities.

In fact, the mere act of flipping houses already helps in an area’s livelihood problems. When you rehab a fixer upper, you seek the services of a painter, repairman, plumber, and other workers – giving locals additional sources of income.

Rehabbing houses will always be negative for non-believers. But for those who know the positive effects of this business – not only on their pockets but to the community as well – it will always be business as usual. If you still need more convincing, visit RehabList.com. The web site has informative pieces on flipping houses and real estate investing in general. It serves as the meeting place for everyone involved in real estate investing. From buyers of fixer uppers, to sellers, to rehabbers, to wholesalers, to money lenders, you’ll find get something from RehabList. To avail of the free services RehabList offers, simply create a log-in account.

About the Author

Real Estate Investing Program

The RehabList.com real estate investing program was formed to bring together the wholesale finders of single family homes in need of repair, Realtors, independent “finders or birddogs” and home sellers with the rehab customer.

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