Tips for our first house flip?
Considering flipping a house in a hot realestate market. Any tips? Weblinks are awesome!
I wrote hot market because Im not from the states… Im in a market thats has 26% increase for the last 2 years. Ive already bought 2 houses and sold one. One i live in. Were considering buying a cosmetic house to work on and sell. My fiance is a carptenter.
Make sure you have at least 1 year worth of Principle and Interest payment on the home you are going to purchase in reserve.
Also, take into account the taxes and homeowners insurance.
Oh don’t forget the money you may need to dump into the house to get it ready for sale.
Also, take into account a 6-7% fee to sell the home through a qualified Realtor!
Be careful, be very careful!!
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March 5th, 2010 at 10:44 pm
Remember kitchens and bathrooms sell! Dont skimp on those rooms. Dont go overboard on the other rooms either.
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March 5th, 2010 at 11:27 pm
watch TLC lol that will give you many ideas
- stick within your budget
- expect to extend your finish date.
- do it in a decent neighborhood.
- check prices in that neighborhood
References :
March 6th, 2010 at 12:02 am
Not a flipper, but I have heard talk that the neighborhood is the most important part. You can take a shack and turn it into a mansion, but its no good if its still in the shack neighborhood, so really do your research on other houses in the area and what they go for.
References :
http://ezinearticles.com/?A-Beginners-Guide-to-Flipping-Houses&id=4317
March 6th, 2010 at 12:19 am
Make sure you have at least 1 year worth of Principle and Interest payment on the home you are going to purchase in reserve.
Also, take into account the taxes and homeowners insurance.
Oh don’t forget the money you may need to dump into the house to get it ready for sale.
Also, take into account a 6-7% fee to sell the home through a qualified Realtor!
Be careful, be very careful!!
References :
March 6th, 2010 at 12:50 am
We rented a small private storage unit and emptied our house of any furniture that seemed to large or clogged the "flow" of the room. Also extra garage, basement, attic things went in there as well.
Neutral colors on walls
Turn on all the lights, even if showing during the day.
Buy some flowers at the grocery to put in the kitchen, living room coffee table, etc…
References :
Sold 3, all with offers w/in 5 days on market
March 6th, 2010 at 1:18 am
With the housing market as it is, you are taking a huge chance. If you’d done this three years ago, you might have made a profit but now your chances are dicey at best. Most people who think they know about ‘flipping’ get in over their heads because they know nothing and are not actual experienced contractors. They do not take into account extra costs because they have no idea what the problems can be. Then, they idiotically have to pay TWO mortgages at once because they have setbacks and incredible extra costs and time and do not figure any of this realistically. People are now sitting on their own houses, not flips, for over 6 months trying to sell it because they cannot afford the taxes, mortgage payments and HOAs. I cannot fathom why you would pick NOW to try this.
My major tip: don’t let greed destroy you. That is what happened to so many people who thought they would buy a half million dollar house and then make over a million reselling it. That is at least one-third of the cause of the dying housing market. If you cannot afford three times the cost of what you have already figured, you could very possibly lose BIG. This is the harsh reality, but would you want me to lie to you?
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March 6th, 2010 at 1:38 am
To many people try and save money by trying and doing everything themselves yet they have no knowledge of how to do it. This takes considerable more time and more than likely you will make mistakes that must be fixed. Get a good crew with a lot of experience and turn it efficiently and quickly. Time is money in flipping a house.
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