If you are interested in learning how to buy a piece of real estate and flip it, there are some facts that you will need to know, especially since today’s economy has created a slumping housing market and not many homes are selling. However, the good news is that the market is looking up, and its just a matter of time before more buyers get into the game.
When it comes to flipping a house, you should first become acquainted with the neighborhood. This includes analyzing factors such as the price of other similar houses for sale, the schools in the area, the presence of parks or other amenities, the employment rate, and the crime rate. These things may not seem critical because you may not actually be living in the house, but they are important nonetheless because an unsavory neighborhood will be less likely to garner much attention when you are trying to sell the property. Much of the information you will need to analyze can be found at census.gov or at your local real estate office.
Once you have found the right house to buy, get ready for the work to begin. Flipping a home is not necessarily a cheap or easy thing to do, so you must make sure you budget accordingly. And when you budget for the project, remember to add a buffer of some sort in order to take care of incidentals that you did not initially plan for. For example, unforeseen repairs like fixing underground leaks, updating the wiring, or getting the property up to code are things that may not have been foreseen before you bought the house. Thus, youll want to reserve a little extra cash to take care of such unanticipated activities as they arise.
Visiting places like surplus building supply stores can help you keep your project on budget. Also remember that the same “rules and regulations” apply to your flipping project as if you were building the house from the ground up. Thus, there will have to be permits and certificates of occupancy given before it can be occupied or sold.
The amount of time it will take you to complete your project will depend on the amount of renovation that you decide to do. If you work with a builder or a contractor, they will be able to give you a projected date that your house will be complete. If you are going to basically tear the home down to its frame and start over, it will take more time than if you were just planning to replace appliances, paint the walls, replace fixtures, and other cosmetic makeovers. Also keep in mind that if you are doing all of the work yourself, it may take longer for you to complete the project, but the upside is that your return on investment (ROI) should be higher.
In the final analysis, buying, rehabbing, and flipping a home can be an adventure that is both fun and profitable. Just remember that making money off of your project is going to take some good planning as well as a touch of good luck.
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