Flipping..

 

Real estate investor Austin Rutherford, who has over 700,000 followers on TikTok, has talked at length about the opportunities for wealth in real estate investing since the start of the pandemic. But, in a recent video, he breaks down how his latest deal will likely result in a $30,000 loss.

Rutherford purchased the Hilliard, Ohio home last year for $248,000 and says he put in between $5,000 and $10,000 worth of work. Now, he's receiving offers for only $260,000, which after closing costs and agent fees will likely put him in the red.

Flippers across the country from small-time independent operators to major corporations are facing difficult market conditions as increasing mortgage rates freeze out buyers. 

The iBuyer firm OpenDoor has been losing money on homes in pandemic real estate hotspots Austin, Atlanta, and Phoenix. More recently, competitor Redfin announced that it was getting out of the flipping game and was laying off its 13% of its staff. And then in other instances, some flippers are turning to deep-pocketed investors to bail them out.