6 Common Mistakes in House Flipping in Seattle, Tacoma Washington
Port Orchard Flip
I’ve been a successful Real Estate agent helping others buy and sell houses in the Seattle, Washington and Tacoma area since 1998. A few years back, when the market was terrible, I began helping a major investor who was buying and then flipping houses. They identified properties in the Seattle Tacoma region based on various auctions. I would view and assess the home, determine the work needed, and cost to get it done. Then, of course, determine the final sales price. This large cash rich company would then bid on the home based on my recommendations. They were making a killing flipping houses based on my work.
After seeing the profits I was generating for this company, I figured why not me?
Here’s a quick list of 6 mistakes we've encountered.
Underestimating costs: The work ALWAYS costs more, than initially anticipated. There are always unknown contingencies that come up. Rot, structural problems. Inspectors requiring crazy stuff. Flipping houses always costs more than you originally figured whether you’re in Seattle Tacoma, Washington or anywhere else.
Hiring idiots: I have a construction background and can do almost all the work myself, but it’s not cost effective to do so. I have to hire help. Do your best to find the most competent help at the cheapest price you can, then keep them happy. Easier said than done I know. I burned thru a lot of not so good contractors before I found and kept a couple good ones.
Overextending yourself: Don’t bite off more than you can chew. If you’re starting off just try flipping one house at a time, no matter how good the next deal looks. Finish your project, Sell, take your cash and move on. It’s super stressful while all your money is tied up in a house you’re flipping and your shelling out more to fix another up, all the while another is sitting and you’re paying the carrying costs
Condos with high dues: There was a condo we were flipping that had dues at $604/month. Crazy I know. Those additional carrying costs hurt badly, and it was $1000/month just to hold the property with no mortgage. Just the dues on that property translated to over $100,000 in a mortgage based on today’s interest rates.
Doing poor work. Flipping houses isn’t just slapping some paint up and selling. It would be nice if it was that easy. Put out the best product you can. It will pay off. Over improving: Push the highest price for the house that you’re flipping based on the neighborhood, but don’t go crazy.
If you want to make a ton of money flipping Houses in the Seattle Tacoma Washington just ask me.
Before Video of a Home we Flipped in Port Orchard