The Ultimate Guide to Flipping Houses in Lincoln

The Ultimate Guide to Flipping Houses in Lincoln

Located directly northeast of Sacramento lies the stunning city of Lincoln, California. Known as one of the best places to settle down, Lincoln is a vibrant, upscale place to live — a fact seen in its robust and lively housing market. Buyers can’t get enough of Lincoln real estate, so it’s no surprise that companies and individuals are looking into house flipping to benefit from the city’s booming market.
House flipping is the process of buying a home that needs work, renovating it, and selling it for a profit. Although television glorifies house flipping, it can take a lot of time, money, and research, so it’s essential to know the ins and outs of the process before sinking funds into a potential project. However, don’t fret. With this guide, you’ll have all the necessary information and tools you’ll need to begin your house-flipping journey. Keep reading to learn about our best-kept secrets.

2023 Lincoln housing market analysis

Where you choose to flip a home in California certainly matters. For instance, you do not want to invest in a property that has no return on your investment. Or, even worse, a property that looks decent from the outside but, when it’s time to begin renovations, has a lot of significant, costly damage. When flipping a home in Lincoln, you’ll want to learn more about the area’s local housing market, as it can fluctuate.
In Placer County, the average home value is $700,000, and the average sold price has risen 1.1% over the past year to beat its well-known neighbor, Sacramento. That said, Lincoln can be a great location to flip a home and make a profit. Although finding homes for sale in Lincoln, California, is somewhat competitive, many opportunities exist to flip homes and earn a profit.

How to find cheap Lincoln properties

Paying too much for a potential flip can set you up for failure. It is essential to look for homes listed under the area's average price. One of the main things to look out for in a potential home is the structure. To many people’s surprise, a shabby-looking house with no structural problems can actually be worth more than an aesthetically pleasing home with structural issues. While chipped paint and broken windows shouldn’t be too costly, foundation issues could set you back thousands of dollars. Avoid homes with cracked foundations and environmental problems.
As many experienced real estate owners will share, location matters. When you are touring a home, make sure to explore the surrounding area. Is the home in front of a heavily trafficked area? Is it near a top-rated school? Buying the worst-looking house in the best-looking neighborhood is often the best scenario. Although these types of properties can be tougher to find, they can make for a highly profitable flip.

Looking for great real estate deals in Lincoln?

If you are looking for the best real estate deal in Lincoln, you must get to know the market. One of the best ways to learn more about Lincoln’s real estate market is to contact a local real estate agent. With an agent’s expertise, you can identify trends and analyze where the best deals are. If you can find a deal that other real estate investors don’t know about, that’s great! You will likely be outbid if many investors put offers on the same property. The solution is to be proactive about your search while also remaining smart. Trust your instincts and your agent to find the best deal for you.

How to analyze deals

Let’s say you found the perfect house to flip. You’ve walked through the home and everything looks great. Now it’s time to analyze the data. Is the home priced below market value? If so, why? The aim is to make a profit, so the lower the cost, the better.
You should also consider the 70% rule, which will help you determine if an offer price is profitable. First, you must estimate what the home will be worth after renovations. Once you have the after-repair value (ARV), multiply it by 70% and subtract the expected renovation costs. This will help you determine the maximum purchase price you should offer on the home. Overall, real estate experts will tell you this is one of the most reliable ways to analyze deals.

How to finance Lincoln flips

If you are serious about flipping Lincoln, CA, real estate, then you must have your finances in order. There are numerous ways to finance your house flip. One common way is to use a private money lender. Private lenders are great resources and typically know how profitable house-flipping can be. Usually, private lenders require a deed of trust or hazard insurance, as these help them feel secure in the deal.
You can also get a conventional bank loan, but this route may be more challenging, as you, the borrower, will appear riskier because you are flipping the home. In turn, you may have to put down a larger downpayment.
Finally, don’t forget about your own assets and savings. If you have an IRA or profits from a recent business deal, now is the time to use that money to continue the positive cash flow.

Why Lincoln is one of the best cities in California for house flippers in 2023

Lincoln, California, is a highly sought-after city for people of all ages. With excellent schools close to the Bay Area and Sacramento, a welcoming community, and incredible city amenities, Lincoln continues to grow exponentially, and for a good reason! Its history as a once sleepy town and the wide range of older homes in the area have made Lincoln a great place for house flippers to make a profit.
Are you interested in flipping houses in Lincoln? If so, contact trusted real estate agent Dayna Summers to start the process today. Her expertise and knowledge of Lincoln’s real estate market will be crucial in helping you find the perfect house to flip for a profit.

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