subject: Flipping Houses: Flipping Fixer-Upper Homes [print this page] Flipping Houses: Flipping Fixer-Upper Homes
"Buying low, selling high." This is the most important principle in real estate investing. However, not all cheap properties are steals. Be careful when flipping houses, especially fixer-upper homes. Your sweet dream can turn into a nightmare if you don't know how to choose the right house. Yes. It all starts with the right house.
An ideal fixer-upper home for a rehabbing project is a house with minimal repairs. It's easy to flip this house because buyers want less renovation. This also means less expenses for them. Of course, buyers like to finish the rehabbing process immediately in case they want to occupy the house or they want to have it as a rental property.
The location of the house is a very important thing to consider. Tried and tested, location affects the marketability of your property. Don't buy a property next to a power plant or near a noisy and congested street. Flipping houses in bad location is very difficult. There is a high possibility that this property will be stuck on you.
Check the condition of the property. Houses with major structural repairs can cause you problems. Major renovation includes reroofing, total kitchen and bathroom make-over, additional features like garage, installation of new electrical wires, and adding air conditioning systems. These are expensive improvements. Investing in a house like this can cost you so much instead of giving you profit.
There are homes with terrible design and layout. Avoid such houses. Why? Consider your buyers' preferences. Some families don't like a house with bedrooms at opposite ends, especially if there are kids in the family. Some home buyers want a house with three bedrooms and two or more baths. Don't make mistakes. Learn your target market's desires. Look around the neighborhood. What type of fixtures do homeowners have in their house? By simply doing that, you'll have a guide to what makes your house at par with others in the neighborhood.
When flipping houses, it's good to hire an expert contractor and home inspector. They will help you determine the repairs needed as well as the cost. Once you know the renovation expenditure, you can decide whether it's a good deal or not.
Never trick home buyers by telling them that the property is good even if you already know that it's not. Greed will bring you nothing. It is not a good practice for investors. Besides, you can't keep it as a secret. Once home buyers find out what you did, expect them to expose your secret to everyone in retaliation. No one will trust you anymore. So always follow the ethical way of closing deals.
There is no room for mistake. If you buy the wrong house, that's a dead end for you. Good thing you can have all the help that you need. Visit RehabList.com now.
