House Flipping: 10 Things to Consider

House flipping can be a tantalizing prospect, but buyers and sellers, beware! It’s not as easy as it may look to the casual watcher of house-flipping shows.

Determine Your Source(s) of Funding and Overall Budget

You may be surprised at what you find when you rip open a wall or tear up a floor, and there are items you may not realize you need at the beginning.

Research how long properties are on the market and if price reductions are frequent. The goal here is to figure out which homes sell quickly and why.

Study Your Neighborhood’s Market

Issues like peeling paint or a messy lawn are cosmetic problems that are easy to remedy. Avoid properties with costly repairs like those that need a new roof or boiler.

Find the Best Deals

Keep your eye out for properties that are a cosmetic mess but structurally sound. Get the cheapest house in the priciest neighborhood.

Don’t Buy Unique Properties

Plan Your Repairs in Order

A detailed spreadsheet with start and finish dates will help in deciding when to pay for repairs, schedule contractors, and meet with inspectors.

Follow the 70% Rule

The 70% rule is a guideline for how much to spend on the property to be flipped. It suggests that a buyer should pay 70% of its after-repaired value, or ARV, less the cost of the repairs needed.

Swipe Up To  Read More

Swipe Up To  Read More

For More Posts Like This Visit

For More Posts Like This Visit

Money Saved Is Money Earned!