SIOUX FALLS, S.D. (KELO) — More than 7-percent of all homes sold in the U.S. at the beginning of this year were flipped homes. That’s according to a new report from ATTOM Data Solutions.
Even though the number of flipped homes people are selling is increasing, the profit for a lot of people is dropping. KELOLAND’s Sammi Bjelland takes a look at this changing industry and meet a local flipper.
Buy a home, fix it up, and sell it for profit.
Jayne Knochenmus says a lot of people are drawn to this house flipping lifestyle right now because of low interest rates. However, with high demand in Sioux Falls it can be hard to make money.
“You know, you have to have the eye for potential. Seeing if there’s rotten windows, certainly take them out and put in new. You got to be able to walk in a room and see what the potential has,” said Knochenmus.
Knochenmus started flipping houses in 2013, when her daughter needed help remodeling a home. That’s when she discovered she enjoys taking something outdated and making it beautiful again.
“Sure, I can do the painting and I can rip out carpet, but I also know there’s so much attention needed in every area that I have to decide what I can do and what I need to hire out. I can demo a wall or gut a kitchen or bathroom, but to put it back together I probably need some help,” said Knochenmus.
This is a part-time gig for Knochenmus, who also operates a farm with her husband. She says after 13 homes, she has a good connection with contractors in town, which makes her job easier.
Even with professional help, she suggests anyone looking to get into house flipping needs to do homework, and be ready to tackle challenges.
“It’s not always a walk in the park. There’s a lot of work to be done. But it’s hard work and in the end you can see what improvements you’ve done,” said Knochenmus.
Knochenmus tries to make a profit of about $15,000 to $20,000 on each home. She tries to get them flipped within three months.