When you research house-flipping statistics, single-family homes and condos are usually grouped together. In one way that makes sense because they are living accommodations that target a similar type of need, however, when it comes to the house flipping business, these two home options have a lot of differences.

What Makes Condo Flipping Different?

At HomeVestors®, we’ve flipped condos across the nation. The first factor that always needs to be considered is the homeowners’ association (HOA) – the fees and their rules. Both are set for a reason, and you will need to figure out how to work around both if you plan to take on a condo flip. Remember, having a good relationship with the HOA will work in your favor.

However, one of the benefits of a condo property is that you may choose to use it as a rental and derive income over the long term until it appreciates enough to make a sale more appealing. Condos typically have lower profit margins in a flip, but you may be able to enhance your profit if you can carry the property for a time as a rental.

Flipping Condos for a Profit

The cost of flipping a condo is usually less than the cost of flipping a house because the owner of a condo is not responsible for the entire property. Depending on the condo agreement, the HOA can be responsible for exterior repairs or shared HVAC systems, for example. When purchasing a condo for flipping, you should be familiar with the condo agreement as it can impact your renovation budget. Additionally, you will not likely incur expenses for curb appeal, which is often a key component of house flipping.

These differences can result in lower repair/upgrade costs necessary in condo flipping because most of your upgrades will be cosmetic.

Flipping condos can be a good option for inexperienced real estate investors. With fewer issues that require consideration, people who are new to the industry may be able to get some experience under their belts to grow their real estate investment business. However, with fewer repairs necessary to increase the selling price, the profit margin can be lower compared to flipping a house.

Finally, you still have to sell the condo when upgrades are complete, which requires solid marketing expertise and local knowledge to attract the right type of buyer. Remember, while you’re trying to sell the condo, you are still incurring costs that may include HOA fees, so having a solid plan to sell the property is important.

Expand Your Flipping Business with HomeVestors

If you’re new to real estate investing and want to do more than condo flipping in your business, you should consider a HomeVestors franchise. HomeVestors flips both condos and houses, and as a franchisee, you can benefit from proprietary systems we’ve developed for repair estimating and marketing. We’re the house-flipping franchise with the We Buy Ugly Houses® billboards. With over 25 years of home buying experience, we’re known as America’s No. 1 home buyer.

The HomeVestors® Business Model

As a new franchisee, you’re assigned a personal development agent — a seasoned real estate investor — to help guide you through the process of generating leads, determining the best value repairs to perform, and how to market your property for a successful outcome.

The HomeVestors system includes a lending portal where franchisees can match with hard money lenders to purchase a property or complete repairs. Our ValuChek® program can help estimate the costs of more than 80 different repairs and provide adjustments based on geographical region. This saves time in providing a cash offer to the owner and potentially speeds up closing the deal.

Options for a HomeVestors® Franchise

Most franchisees join us without having any past real estate experience, and after completing the training program, they’re on their way to building a house-flipping business. HomeVestors offers two franchise options.

We have two franchise options – the full franchise for a full-time operator, and an associate franchise for the part-time operator. The total investment is geared to the number of properties purchased and advertising dollars committed. Our franchise entry is flexible to accommodate how you want to run your house-flipping business.

Start Your Real Estate Investing Business with HomeVestors

We’re happy to show you what we do that makes us a great choice for people who need to sell their homes in a timely fashion and who appreciate the option of a cash offer.

Complete our online form to get started with HomeVestors and see what we can offer you as a franchise business owner. Join the network of more than 1,100 franchise owners.