Houlihan Lawrence Inc.
Kelly Corwen, Houlihan Lawrence Inc.Phone: (914) 262-3639
Email: [email protected]

Which to Flip? Comparing Undeveloped Land & Houses

by Kelly Corwen 05/05/2022

Flipping a house is a common practice among DIY enthusiasts and those wanting to make a quick profit in a hot housing market. Flipping land is also another way to improve and sell an existing property by investing your own time and money. While both options share similar benefits, they are better for some situations than others.

Here is a basic rundown of the major differences between flipping a house and flipping land:

Convenience

One of the greatest advantages of flipping land is that it rarely requires a property visit. You can find eligible vacant property all over the country from the convenience of your own home without needing to travel. Most successful land-flippers use search engines and other internet resources to find good deals.

Flipping houses generally limits you to a specific geographic location. This means a smaller pool of potential properties. Also, buying and selling a house, regardless of its condition, requires visiting in person or via proxy. You can still use the same convenient techniques, but you will spend more time on logistics.

Profit

Flipping land and flipping houses both come with large potential ROI (return on investment). However, flipping land yields a bigger profit because the purchase prices are so much lower. Vacant and undeveloped land sells for much less than land with existing structures, especially in less heavily populated areas.

Your renovation costs and profits for any flip will depend on many factors. However, with a lower overall up-front cost, land flipping yields a higher ROI.

Income Stream Potential

Making money by flipping property doesn’t end at the sale. Both flipping houses and undeveloped land have the potential to generate ongoing income through seller financing and working with lenders. If you buy land for cash and then sell it with terms, you can collect monthly payments for years. The same goes for houses both for renting or selling. While the costs going into them may differ, both flipping options have equal opportunities for generating ongoing income long after the sale.

Is flipping land or flipping houses right for you? Consider these three points of comparison when doing your research to make the best decision for your situation.

About the Author
Author

Kelly Corwen

As an agent with Houlihan Lawrence, the market leader in real estate, I have access to a referral network for my clients seeking to buy or sell real estate in the United States and worldwide.  I look forward to putting my experience and the power of Houlihan Lawrence to work for you.  Please let me know if you are interested in a comparative market analysis for your home, or if you or your friends and family are looking for a real estate salesperson.  It would be my sincere pleasure to work with you.