It seems that during the last decade, the trend of flipping houses has taken a new level. The issue is that what you see on TV is usually not anything like what you are going to experience in the real world of real estate investing. So here are just a few of the big items that you should look at and understand before you go out and try to make big bucks flipping houses.
Here are some of the main considerations to take before going off to be the next realestate millionaire.
Buy A Cheap House, Invest A Pile Of Cash
Think about this one a little bit before you go too crazy. If you are buying the house dirt cheap, then you may be in for a lot more than you can handle. Figure that the bank would sell the house for a lot more unless there were some major issues in the house. You, as the buyer will inherit these big problems and have to fix them for your buyer.
You should expect that on a super low priced house, you may need to overhaul the plumbing and electrical, as well as repair major foundation issues. These tasks would scare away many investors, but you should jump on them and spend the money it takes to get them done correctly and safely.
The Location Does Matter
That super low price you get on the house may be in part to the fact that it is in disrepair, but it also might be because of the fact that the neighborhood is in decline. Keep in mind that if the neighborhood is known as unsafe, then it won't matter how cheap you sell the house, no one will want it. If you can, hold out for a super good deal in a super nice neighborhood. This is always a good investment.
Focus On These Elements
The quickest way to sell the house is to entice your buyer with some very nice, and very new utilities and appliances. In this vein, you should almost always seek to install a new furnace, new water heater, air conditioner and even a new roof. In addition, new appliances in the kitchen, including a dish washer will always play well with buyers. If you hit this hot buttons, you are sure to get a sale.
Fresh Landscape The Outside
You will have a much better chance of selling your investment property if you provide a home warranty inspection and complete home package from a trusted company like American Home Shield. It shows confidence on your part as the seller if you are willing to back up all of your hard work with an insurance policy. Buyers will definitely use this as a reason to buy your house over others that don't offer this perk.
So now are you ready to go out and get the house flipping bug? If so, just be careful and have fun. The money will follow soon enough.
Here are some of the main considerations to take before going off to be the next realestate millionaire.
Buy A Cheap House, Invest A Pile Of Cash
Think about this one a little bit before you go too crazy. If you are buying the house dirt cheap, then you may be in for a lot more than you can handle. Figure that the bank would sell the house for a lot more unless there were some major issues in the house. You, as the buyer will inherit these big problems and have to fix them for your buyer.
You should expect that on a super low priced house, you may need to overhaul the plumbing and electrical, as well as repair major foundation issues. These tasks would scare away many investors, but you should jump on them and spend the money it takes to get them done correctly and safely.
The Location Does Matter
That super low price you get on the house may be in part to the fact that it is in disrepair, but it also might be because of the fact that the neighborhood is in decline. Keep in mind that if the neighborhood is known as unsafe, then it won't matter how cheap you sell the house, no one will want it. If you can, hold out for a super good deal in a super nice neighborhood. This is always a good investment.
Focus On These Elements
The quickest way to sell the house is to entice your buyer with some very nice, and very new utilities and appliances. In this vein, you should almost always seek to install a new furnace, new water heater, air conditioner and even a new roof. In addition, new appliances in the kitchen, including a dish washer will always play well with buyers. If you hit this hot buttons, you are sure to get a sale.
Fresh Landscape The Outside
You will have a much better chance of selling your investment property if you provide a home warranty inspection and complete home package from a trusted company like American Home Shield. It shows confidence on your part as the seller if you are willing to back up all of your hard work with an insurance policy. Buyers will definitely use this as a reason to buy your house over others that don't offer this perk.
So now are you ready to go out and get the house flipping bug? If so, just be careful and have fun. The money will follow soon enough.
About the Author:
House flipping is not that difficult. If you want to learn about lawn care, then visit our blog and learn all about lawn treatments.
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