subject: How Real Estate Investors Identify Great Deals When Flipping Houses [print this page] How Real Estate Investors Identify Great Deals When Flipping Houses
Here are 7 important thing to check when buying houses.
The obvious qualification when buying any investment property is if you are buying it low enough.
In order to qualify a house as a good investment, there are important points you must consider.
1) Extent of repairs
Houses for flipping will almost always need repair.
It is important that you find out the dept and cost of all needed repairs.
If they are just light repairs, then the deal is probably good.
Unexpected fixes can east up all your profits.
2) Budget
Can you fix it and stay within your estimated budget?
At times, it possibly will be vital to do an inspection even for a house that needs repairs to find out if you might require to do structural repairs such as plumbing, changing walls and so on.
3) Time frame
Can you complete repairs within a short time?
Will the changes increase marketability and selling price?
Flipping houses needs speed so costs remain low.
You must aim to spend as little as possible, make your profits and proceed to the next deal.
4) Hiring contractors Vs doing it yourself
Even though flipping houses involves wholesaling them to other rehab real estate investors, it could be necessary to assess the type of rehab that needs to be done and if you can do it yourself if necessary, or hire a contractor to do it for you while keeping the carrying costs low.
5) Neighborhood
Avoid war zones or run-down neighborhoods.
You must also avoid high end areas when flipping houses.
Staying within the medium price range will not only give you more deals, but your properties will be easier to sell.
Does the house match with most houses in the neighborhood?
Is it too small or too big compared to the other houses?
These factors make it tough to sell and leave little profit for you.
Stay within the average for the neighborhood to sell faster.
6) Comparable sales
Do comparable houses sell at prices that will allow you to make a profit?
Though you could think you are buying low, comparable sales in the neighborhood could prove you wrong.
It is safer to have conservative estimate of the fair market value when buying houses than make end up making a loss because houses in the same market have not been selling within your price range.
7) Demand for the property
Even in a low housing market, some neighborhoods are more marketable than others.
Is it accessible to schools, shopping, parks, hospitals and others that make it more marketable?
This will make it easier to sell your house fast .
Whether you plan to flip the house to another investor or do the repairs yourself, these are important factors to consider that will make your house sell faster and move on to the next deal.
