If you are thinking about flipping houses, then you want to make sure you have a clear understanding of what you should do in order to flip them without finding yourself in trouble along the way. Flipping houses can be a great venture that can show you fantastic results, but it is also risky, especially if you aren't extremely knowledgeable on real estate, the market and other things you should know about. Here is a beginner's guide to flipping houses that you should review:
Only look at houses well within your budget
When you are going to be flipping a house, it is very important for you to make sure you buy a house that you can afford to pay the mortgage on until it sells. This is important because no matter how nicely you fix up that house and how great the current market may be, you can never count on a house selling within a for sure period of time. You need to know that paying the mortgage on that house is something you can do without risking getting yourself into a bad financial situation.
Make sure you have inspections done, if possible
If you are purchasing a home through the traditional channels, then you want to make sure you have all possible inspections done. This way, you know just what you are getting into as far as the repairs and upgrades you are going to have to take care of. These can include:
- A regular inspection
- A termite inspection
- A mold inspection
If you purchase a foreclosure or a house at auction, then you may not be able to have an inspection done, and this makes it a far greater risk for someone just starting out.
Verify you have the means to do the repairs
If you are working with limited finances and/or remodeling experience then you want to make sure you only consider houses that you get to do complete walkthroughs on and that you can have inspections done on. This way, you will cut down on the chances of running into surprise issues that can put you over budget and cost you more than you can afford, putting you in monetary distress.
Consider the selling points a house has
You want to verify there are things about a house that can be used as real selling points to help move it faster. Some examples of great selling points include:
- A swimming pool
- A fireplace
- An extra family room
- A safe neighborhood
- A good school district
- A nearby park
- A nearby shopping center
- A large lot
- A lot of square footage
- A large kitchen