Flipping Houses in Nebraska: A Complete Guide for 2022

If you are looking for a comprehensive guide to start flipping houses in the state of Nebraska, you’ve come to the right place.

Flipping houses is one of the most successful ways to get started investing in real estate. It might be a lucrative business venture. However, since it is a high-risk investment, you must consider a number of aspects.

But have no fear, I’m here to help you with your research and decision-making. This detailed guide breaks down the market analysis, assessment, and technique for flipping properties in Nebraska.

Flipping Houses in Nebraska

Nebraska has one of the hottest housing markets in the country. It’s a once-in-a-lifetime income opportunity for house flippers. Despite the low housing market valuation, investors who pick the right properties and flip houses in Nebraska earn a substantial profit.

Every investment, including real estate, is very localized, and Nebraska is no different. Paying attention to current market events and understanding how to respond quickly can help you recognize a profit or loss. To grasp the trends in these local markets and locate investment opportunities, you should always deal with a local expert real estate agent. Their complete knowledge of the ins and outs of these specialized housing markets can help you at every step of the way.

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Analyzing the Nebraska Housing Market in 2022

Nebraska is the 12th cheapest housing market in the country. Nebraska’s normal house worth is at $236,000 as of April 2022, which is much less than the national average home value of $344,000 Furthermore, home values in Nebraska climbed by 7.56 percent in 2021 and are expected to rise by another 14 percent in 2022. These prices, on the other hand, vary even within the state, indicating how regional and localized housing markets are.

This trend in the Nebraska housing market has attracted real estate investors from all around the country. The demand for Nebraska homes now outnumbers the supply. In Nebraska’s housing market, this has resulted in a strong seller’s market. The reason for the inflow of investors into Nebraska’s real estate market is simple. Growing population and improved job and education sectors are two of the main reasons for this. Nebraska has a 91.1 percent high school graduation rate and a typical family income of roughly $60,500.

In Nebraska, the job market was likewise steadily improving. The coronavirus epidemic, on the other hand, has had a significant impact on Nebraska’s labor market. Nonetheless, the prediction implies that by 2022, the job market will have recovered to pre-pandemic levels. Nebraska’s job market is predicted to rise by 2.6 percent in 2021 and 1.5 percent in 2022, compared to a loss of 3.7 percent in 2020.

In addition, Nebraska’s low housing costs make the market more accessible to first-time real estate investors. You’ll need less money to get started, which implies there will be more newbies in the future, and therefore greater competition.

How to know if the house in Nebraska is a good investment?

After you’ve gotten a better grasp of Nebraska’s housing market and economy, you’ll probably want to check into a more specific area and neighborhood to identify potential homes. Keep in mind that not every local home market offers the same kind of investing options.

In general, determining whether or not a property is a suitable investment is based on a number of variables. As a general guideline, avoid local marketplaces with a lot of inventory and listings that have been active for a long time while you’re just getting started. It’s a no-go if, for example, a house in a certain Nebraska area generally sells within 30 days, but you located a listing that’s still live after 40 days.

Another indicator that a home in Nebraska is a smart investment is if the price is lower than the local market average. One of the easiest methods to spot possible value is to look for properties that are much less expensive than previous sales in the area. Keep in mind that the less costly residences will require far more modifications than the more expensive ones.

How much should I pay for a house in Nebraska?

It’s usually a good idea to keep to the 70 percent rule when deciding how much to spend on a home in Nebraska. According to this rule, you should never spend more than 70% of the house’s after-repair worth, less repair and renovation expenses. Let’s say you buy a house in Nebraska for $25,000 and want to spend $25,000 on repairs and remodeling. Keep in mind that upgrades raise the property’s market value. Let’s say your house is worth $375,000 after repairs.

According to the 70% rule, you should spend no more than 70% of the after-repair value minus repair expenditures on this property. When you add up the numbers, it only amounts to $237,500.

It’s critical to keep in mind that the 70% rule is discretionary. It’s only an estimate of the house’s genuine worth. The goal of this guideline is to create a profit margin that is substantial enough to cover all other costs while flipping houses in Nebraska while still leaving you with a good profit margin.

Do you need a real estate license to flip houses in Nebraska?

To flip houses in Nebraska, you don’t need a real estate license. Having said that, acquiring both a realtor and a contractor license is typically a smart idea if you want to start flipping houses in Nebraska full-time.

If you don’t want to cope with the difficulties of obtaining a Nebraska realtor or contractor license, it’s fine. In this case, I strongly suggest you to choose an experienced realtor and contractor with whom you can have a good working connection.

Finally, locating a reliable contractor or repairman might be difficult if you are new to Nebraska. Furthermore, zoning limits and rules differ by city, and market trends change often. Working with a trustworthy agent or contractor might help you foresee problems.

How to start flipping houses in Nebraska and make a profit?

Once you’ve done extensive research on the Nebraska housing market and are certain that the property is a sound investment, you’re ready to start your home flipping journey in Nebraska. To start flipping houses in Nebraska and profit handsomely from this form of real estate investment, follow these six steps.

1. Create a Budget and Secure Financing

The first thing you should consider before beginning to flip houses in Nebraska is your financial situation. It’s typically a good idea to perform the arithmetic before looking at potential qualities.

You should already know how much money you have if you have cash on hand. By paying cash for your Nebraska house flips, you may avoid financing charges, mortgage payments, and any other closing expenses or fees. As a consequence, while flipping houses in Nebraska, if you have cash, you should always use it.

Using a loan or other kinds of financing to acquire and restore a house in Nebraska may lower your potential returns dramatically. If you borrowed $300,000 to buy a house in Nebraska, you’ll have to make mortgage payments until the property is sold. Even a ten percent down payment on a home can cost upwards of $30,000. Furthermore, you’ll need to invest an extra $55,000 in addition to the $25,000 for repairs and improvements.

Unfortunately, repairs and upgrades take time. As a result, you may end up paying your mortgage for a longer length of time, perhaps losing out on a significant profit margin. Furthermore, when property taxes, construction permits, utilities, marketing costs, closing fees, home insurance, realtor commissions, and other costs associated with flipping houses in Nebraska are taken into account, you may not be able to earn any money at all.

As a consequence, having cash may help you save money on all of these things while also allowing you to keep as much of your earnings as possible.

But don’t be concerned if you don’t have any cash. There are still a few alternative ways to support your house-flipping business on a shoestring budget.

2. Research the Cities and Neighborhoods

You may evaluate the neighborhood’s desirability once you’ve discovered the properties that are listed below market value and taken into account other indicators such as active days on the market. When flipping properties in Nebraska, the quality of the neighborhood is a key factor. Although the listing and sales price are good indications of the neighborhood’s worth, other quantitative criteria such as the quality of education, entertainment, parks and recreations, and the neighborhood’s shopping experience should also be considered.

Existing housing stock in Nebraska’s older villages, as well as a burgeoning metro region, may benefit from restoration and rehabilitation. You may make a good living flipping properties in Nebraska if you learn to recognize the correct possibilities.

Here is a list of the 4 best cities to flip houses in Nebraska for 2022.

Flipping Houses in Omaha, NE

Omaha is the biggest city in the state of Nebraska. This city is composed of 159 neighborhoods and offers multiple affordable duplexes, triplexes, and affordable multi-family homes. As of April 2022, the median listing home price in Omaha is just $250,000, trending up 11.1% year-over-year. The median listing home price per square foot is $141.

The city offers 183 public schools rated good and higher by GreatSchools and also 65 private and charter schools. Omaha also offers hundreds of grocery stores, restaurants, and cafes. There are also a plethora of beautiful parks and gyms for a healthier lifestyle.

Out of the 159 neighborhoods in Omaha, Dundee is the most expensive one with a median home price of $414,000. On the other hand, Miller Park – Minne-Lusa is the most affordable neighborhood, with a median listing home price of just around $112,500. There are also some other great neighborhoods like Benson, Northwest Omaha, Maple Village, and Hanscom Park.

Flipping Houses in Nebraska City, NE

Nebraska City is a city in Nebraska that is composed of 32 neighborhoods and offers multiple affordable duplexes, triplexes, and affordable multi-family homes. As of April 2022, the median listing home price in Nebraska City is $164,000, trending up 2.5% year-over-year. The median listing home price per square foot is $134.

The city offers 7 public schools rated good and higher by GreatSchools and also 2 private and charter schools. Nebraska City also offers hundreds of grocery stores, restaurants, and cafes. There are also a plethora of beautiful parks and gyms for a healthier lifestyle.

Out of the 32 neighborhoods in Nebraska City, East Outlying Papillion is the most expensive one with a median home price of $354,500. Conversely, 51652 is the most affordable neighborhood, with a median listing home price of just around $115,000. There are also some other great neighborhoods like Plattsmouth, Northwest Bellevue, and Bellevue Boulevard West.

Flipping Houses in Grand Island, NE

Grand Island is a city in Nebraska that consists of 33 zipcodes and offers multiple affordable duplexes, townhomes, and affordable multi-family homes. As of April 2022, the median listing home price in Grand Island is $240,000, trending up 27.9% year-over-year. The median listing home price per square foot is $174.

The city offers 33 public schools rated good and higher by GreatSchools and also 6 private and charter schools. Grand Island also offers hundreds of grocery stores, restaurants, and cafes. There are also a plethora of beautiful parks and gyms for a healthier lifestyle.

Of the 33 neighborhoods in Grand Island, Capitol Beach is the most expensive with a median home price of $550,000. On the other hand, South Salt Creek is the most affordable neighborhood, with a median listing home price of just around $125,000. There are also some other great neighborhoods like Highlands, Belmont, and West Lincoln.

Flipping Houses in Lincoln, NE

Lincoln is the capital city of Nebraska and is composed of 47 neighborhoods and offers multiple affordable duplexes, triplexes, and affordable multi-family homes. As of April 2022, the median listing home price in Lincoln is $260,000, trending up 10.7% year-over-year. The median listing home price per square foot is $145.

The city offers 73 public schools rated good and higher by GreatSchools and also 31 private and charter schools. Lincoln also offers hundreds of grocery stores, restaurants, and cafes. There are also a plethora of beautiful parks and gyms for a healthier lifestyle.

Out of the 47 neighborhoods in Lincoln, Downtown Lincoln is the most expensive one with a median home price of $355,000. On the other hand, Hartley is the most affordable neighborhood, with a median listing home price of just around $130,000. There are also some other great neighborhoods like Meadowlane, Havelock, and Highlands.

3. Assemble your team

Whether you want to flip houses in Nebraska full-time or part-time, you’ll need a team to make each one a success. You’ll very certainly need the help of a real estate lawyer, a lender, a real estate agent, a general contractor, a few workers, and an accountant.

Furthermore, if you want to make home flipping a regular part of your investment strategy, working with a trusted team rather than a new specialist for each job is ideal.

4. Select and Purchase your Nebraska House

After you’ve sorted out your finances and determined whether or not it’s a good investment, it’s finally time to buy your Nebraska property. Another factor to consider when buying a home is that houses that require more maintenance and upkeep are sometimes less expensive to purchase. As a result, they will take longer to resell.

Houses that are in good condition and do not require extensive repairs and changes, on the other hand, are significantly more expensive. Even if you pay more money up front, you will save a lot of money in the long term and will not have to worry about home renovations.

As a result, while buying a home in Nebraska, strive to strike a compromise between these concerns. Choose a home that best fits your abilities, money, and timeline.

5. Repair and Renovate the House

Consider how much money the house will need to spend on repairs and changes, as well as how long they will take. Determine which improvements will add the greatest value and if they will appeal to potential purchasers. For homeowners who wish to avoid the hot and humid Nebraska summers and the chilly Nebraska winters, adding air conditioning and energy-efficient renovations to their property may quickly boost its value.

Furthermore, power washing the outside, painting the house, replacing a leaking faucet, reglazing and caulking bathtubs, and cleaning the floors are all minor but necessary tasks that will speed up the sale of your home.

6. Resell the Renovated Nebraska House for a Profit

Once you’ve done repairing and restoring the property, it’s time to put it back on the market. In Nebraska, you have two alternatives for reselling your house. The first option is to sell for sale by owner (FSBO), while the second option is to sell with the help of a real estate agent.

One of the many benefits of selling your house without the assistance of a real estate agent is that you will save money on commissions. Remember that even if you sell your Nebraska home on your own, you must still pay a commission to the buyer’s agent (3 percent ). If you want to sell your house quickly, you’ll need to be ready to barter like a pro and fill out all of the paperwork correctly.

If you don’t want to deal with the hassle of selling the home yourself, you may always hire a professional real estate agent. The process of preparing contracts, discussing them, signing them, and closing them will all be expedited. However, you will be need to pay them a 3% fee for their services.

How much money do house flippers make in Nebraska?

The average revenue per flip in the US is $60,000, while in Nebraska it’s around $79,000. This means the average revenue per flip in Nebraska is $19,000 more than the national average. I mean it makes sense. The high quality of living, strong education, and job market paired with a seller’s real estate market contributes to higher revenue per flip

Furthermore, it is also important to understand that the revenue per flip is not the net profit. You will also need to allocate some money for repair and renovations. There may be a wide range of repairs necessary depending on the current state of the home, but if you spend $30,000 fixing up the home. Once you deduct all other costs and charges, you will be left with a net profit of around 25,000 to $35,000.

Thus, its safe to assume that on average you can make at least $25,000 by flipping a single house in Nebraska. Furthermore, an average real estate investor flips around 4-5 houses per year. That means you can expect to make around $125,000 per year flipping houses in Nebraska full-time.

Final Thoughts

In general, flipping houses in Nebraska is a great way to get started investing in real estate. Nebraska is rapidly developing and has plenty to offer inhabitants of the Cornhusker State. It is one of the most profitable states for flipping properties. In addition, finding profitable flips in Nebraska requires a combination of your ability, knowledge, and luck. Once you’ve discovered a good deal on a house in Nebraska, be sure you stick to your plan. Moreover, refurbish the property accordingly, and sell it to a high-end buyer.