Thread: Flipping Houses Essentials

Flipping a house and sell it makes more money. It's a good investment, however,before doing this, are tons of factors that must be consider
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It's just a math problem, nothing more. If the math works then it can be done.

Originally Posted by MinnesotaPropertiesOnline

It's just a math problem, nothing more. If the math works then it can be done.

If you really believe it's that simple, then you are a deal or two away from being a victim. There's much more to it than math. There's location, other projects on the horizon that would affect your bottom line, and much info of which most Realtors would be privy.

Case in point:

I had an investor who was looking to buy a foreclosure in a subdivision that was selling pretty well. The numbers showed that he could buy, do the repairs, and still come up with a very respectable profit were he to sell it for what the market analysis said he could get. What he did not know, and what was NOT IN THE MATH, was that there was a new builder in town who bought up a foreclosed newly developed neighboring stretch of land. That new builder quickly began building new construction homes for $50 per sq foot (granite counter tops, 18' ceilings, crazy large bedrooms, all appliances, even the refrig, 2 car garage, etc.) With that information (that I had) his math no longer made sense in the neighboring subdivision. No one has been buying a single thing (and those are resales) because they can get new construction for almost half the price. If my investor had bought that foreclosure based on his math alone, he would have gotten burned big time. Nothing is selling in that subdivision. This new builder sold all 300 lots/homes in just a few months.

I like to wholesale as much as possible to earn money quickly. It's up to the investor buying my deal to do all the homework.

I'm also in the real estate industry. Would love to discuss with you.
Thanks for this topic.

It's depends upon the customer what their requirements and what are their needs. Some customers are fascinated about the flipping house because to leave in modern and innovative house.

If you are going to flip, know what your plan is first before you just jump in. For example, what type of properties will you buy, what price range, who will you market to for resale, will you sell yourself or hire a realtor, etc. etc.

Flip the house you live in. Ive done it twice.

Buy a home that needs a kitchen and bathroom upgrade and do the work yourself if your handy. As long as the home isnt priced as if the kitchen and bathrooms are like new. The home should be priced as needing handy work. Dont buy a home that the work is over your head leave that to professionals with money to burn.

Kitchens and bathrooms remodels have the highest rate of return.

Dont over do the them. Do them based upon the neighborhood. If granite is common then yes but if the homes in the neighborhood arent expected to be granite you could be overinvesting in the home. Dont overinvest expecting a big payoff.

Flipping a house nobody is living in and the way some areas sit on the market your looking for trouble.

Flip the house you live in. Take 2 years to do the work. Do one project at a time as to not overextend yourself. If you get hurt or run out of money only one item needs a fix instead of an empty house that is in dissaray. Depending on your flip you dont have to pay capital gains on the home. Pace your budget and keep a buffer. Your mortgage comes first and your flip upgrades come last. Nothing wrong with it taking an extra year. Nothing wrong with making money on a flip every two years instead of every two months.

Hi,

Yes I agree that it can be beneficial as it brings a great deal of buying up a property at lower price.It is currently at the top of the list of real estate markets that can benefit most the buyers across the whole world in real estate.