4 Things to Look for When Buying a House to Flip

With the real estate market making a comeback, investors are starting to put money into flipping homes. The cable home improvement channels can give the false impression that flipping homes is easy money. The truth is that it is extremely hard work and there are certain things you need to look for in a home before you decide to get involved in an investment project.

Check the Neighborhood

Neighborhood

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When you research a home to flip, you may find one that seems like a steal at the price that is being asked. In the real estate investing world, do not trust the numbers alone. If something seems too good to be true, then it probably is. The first thing any good flipper will do is check the neighborhood where the home is located. Look to see what kind of selling price other homes in that area have gone for and expect to get a similar offer when you sell your home. Family friendly homes that are near schools and close to stores are always easier to sell than homes which are miles from anything. Also check to see if it is a safe neighborhood and if there are other families that live in the area.

Cosmetic Repairs

Real Estate Repairs

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As you survey the property, check to see if it needs more than simple cosmetic repairs. Replacing the roof, putting in new floors and other major construction activities will require the expensive services of a general contractor. Painting the walls, removing and replacing wallpaper, putting in new carpet and repairing a few broken light fixtures are things that you can do on your own. For a successful flip, try to find properties that require only cosmetic repairs that can be done quickly and inexpensively. You do not need to get too deep into full remodeling projects to make a profit flipping houses.

Quick Projects To Raise The Selling Price

Raise Real Estate Value

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One of the biggest misconceptions about flipping houses is that remodeling the kitchen or bathroom will instantly raise the selling price of the house. The truth is that kitchen and bath remodeling projects are expensive and the return on investment is not as significant as people think. If you want to do a quick remodeling project that raises the value of the house, then install a deck on the back of the house or have the outdated wiring replaced.

Buy Something Close To You

Close Real Estate Property

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One of the things that flippers forget is that they will need to visit the property regularly to make sure that the project is being done on time and on budget. Determine how far you are willing to drive at least three times a week and then set that as your maximum distance for purchasing a property to flip. If you do not keep an eye on your money, then you are letting it go to waste.

Flipping houses can be hard work. If you are going to tie up your money in this kind of investment, then know what you are doing and understand the best ways to maximize your profit.

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