Doing The Numbers: The Key To A Successful Fix And Flip

If you are looking for a way to make quick cash

, you might want to fix and flip a house. Also known as rehabbing homes, the business of fixing and flipping properties is a great way to make money in the real estate business.

However, there is more to rehabbing houses than doing the repairs and the renovations. To make big profits in this type of real estate investing, you have to take certain things into consideration and that include doing the numbers.

First stop, find out a fixer upper homes after repair value before you consider it as your next fix and flip project. You ask an appraiser to help you out. You can also look at similar houses and find out how much they were sold for. If you feel that the property wont bring you a good deal, then you should look elsewhere and find a better fixer upper home. Dont waste your time on a property that wont give you big profits.

Find out how much it would take you to completely fix and flip a property. Calculate all the expected expenses, which include the repair costs, closing fees, loan fees, and the money you need to buy all the necessary materials. Then, subtract them from the projected sales price of the property to determine the amount of money you will earn from the project.

If you think that the expected income is not too shabby, then you can proceed with the purchase and the renovation of your intended project. If not, move on and find a better deal.

When fixing and flipping a home, always remember that the amount of money you spent on renovating a house should raise the propertys market value by at least three times. For instance, if you spend $1,000 on sprucing up the garage, then it should add at least $3,000 to the propertys total market value.

Never make unnecessary repairs. This is one of the cardinal rules of doing a fix and flip project. If you think that certain fixtures, like the kitchen cabinets, dont need to be replaced, then you shouldnt replace it. Just repaint them and install new handles and knobs to make them look new. And as much as possible, keep the redecoration to minimum and always remember that youre rehabbing a house to earn money, not to win a home improvement contest.

To learn more tips on how to fix and flip a house, visit www.REIWired.com. REIWired features top-notch articles and videos that sharpen your rehabbing and real estate investing skills.

by: Daniel Mc Grey

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