Are you thinking of flipping a house? The perception is quick easy money but that may not be the case. A flipper needs to think about tax consequences, repair costs, selling fees, and unexpected things that come up. But the biggest consideration in the finances of a flip house is what house you pick. Here are some tips in choosing the best flip house.
1. Location, LOCATION, location- This old real estate adage is always true but especially true when flipping. When looking at the numbers, ROI (return on investment) and costs, it is great to find the best deal out there. But if the best deal is on a busy street, backs a busy street, has a dump of neighbors or a sub par neighborhood you may want to pass. Those things can't be improved on. You can't fix power lines being in the back yard so when you go to sell you are also going to need to sell lower than a house without power lines. Keep your ROI in mind, because you don't want factor based on things you can't improve on.
*Things to look for- close to a park, good schools, close to a bus line. Get to know your market. Who is going to be your buyer and what things are going to be important to them. Some of the intangibles about a house are very valuable because just as you can't fix a freeway in your front yard you also can't mess up if you happen to be in the top school or near a major employer.
If you are looking to start investing in real estate give Dawn a call 480-540-8100. Dawn is a licensed real estate agent in WA, OR and AZ. She has helped 100's of people to start investing in real estate. She has also flipped many properties herself. Let her experience and expertise make you money. www.DawnWorkman.com 480-540-8100