Summary: Flipping houses can be exciting but stressful. Keep these tips in mind before you start.
Flipping houses might sound like a fun activity to do that can earn a high profit. In reality, it can be a lot of hard work and take some time. Between finding a house to renovate, finalizing the sale, getting all the permits to begin renovating, doing the renovations, then finally putting the house up for sale, it can take years to profit from one single house.
Get A Home in A Good Area
Finding a home in a desirable neighborhood may be the single most important factor when flipping a house. You want to get a house where people want to live. Thus, buying the worst house in a good area is better than buying the best house in a less attractive area. This way, anything you do to improve the house will increase its value, as the house has nowhere to go but up, along with all the other home values in the area.
Find An Experienced Mentor for Guidance
If you can find someone that has been successful in flipping houses, ask him or her to mentor you. You might even offer that person a percentage of your first few profits, to ensure you are getting the best advice possible and really motivate the mentor to help you. The more you can learn from someone else’s mistakes, the less likely you are to make the same ones.
Do Your Research Before You Buy the Home
Check listings for foreclosures, as you are more likely to get a bargain deal for those homes. There are also sites that offer comprehensive background checks for houses. So if the listing states that the heater was replaced five years ago, but the background check reveals that it was closer to ten or fifteen years, you can probably negotiate a lower price for the whole house. You also need to learn about which renovations can be done quickly and by yourself, and which ones will need a contractor to do for you.
Get the Needed Permits Before You Start Renovations
You must make sure you have all the correct permits before you start remodeling a home. If you do not have them, or do not display them properly, you can expect delays and fines from the city inspectors. So make sure you apply for all the permits the moment the sale is final, so you can get to work as soon as possible.