Flipping properties…the buying of a piece of real estate and selling it quickly for a profit…has been a tried and true method of building wealth for a long time. The question has always been, “How long should I hold a property before I sell?”. The answer is a definite…it depends.

If you buy a brand new home the contractor may have a clause spelling out exactly how long you have to hold on to the house before you can sell it. Frequently that is one year. Most preowned homes do not have any type of clause like that.

A general rule of thumb for flipping a home is 3-6 months. You will need to follow this rule if you are having to make repairs or remodeling for a profit. Before or after that 3-6 months and you will be eating into your profit.

A flip artist needs to get in, make what repairs they have to, and then get out as quickly as they can. All the while keeping an eye on profit. A recent study shows that the average flip profit was 15%, but those who flipped the house in 3-6 months had an average profit of 50%. Why such a large difference?

It seems that the key lies in that these people traded in brisk markets, made their repairs quickly, and sold immediately. They were able to sell in markets that were booming and took advantage of it to reap higher profits. You can do the same thing.

The bottom line for you is to choose your area to invest in carefully. Know the market. Negotiate hard and resell within 3-6 months. If you do all of these things you will be able to turn the largest possible profit per property.