Converting Real Estate into Highly Liquid Assets through House Flipping

Abstract

This article explores the opportunities for transforming real estate assets into highly liquid capital through the implementation of the "house flipping" investment strategy, examined within the framework of contemporary real estate yield models. The primary objective is to analyze the potential of flipping as a tool for accelerated liquidity and profit generation, while identifying the key factors for its successful application within the Bulgarian market environment.

Methodologically, the study is based on a comparative and logical analysis of three strategies for the management and capitalization of real property – "buy-and-hold," "Airbnb," and "house flipping," with a central emphasis on the latter. A comparative approach is further utilized to examine practices in Bulgaria and the United States regarding financing, market environment, the role of location, the time factor, professional expertise, and design.

The results indicate that house flipping possesses significant potential for application in Bulgaria due to the availability of undervalued properties, relatively low labor costs, and opportunities for value-adding through renovation, design, and strategic property positioning. It is established that the success of the strategy depends on professional financial planning, precise property selection, effective renovation management, and the investor's ability to transform market deficits into a competitive advantage.