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.
In part 1 of How to buy a flip house we talked location and how location is crucial in picking a flip house.
After you have identified your perfect house to flip, have made an offer and are in agreement with the seller. you will need to get an inspection.
2. Get an inspection- I get it you are trying to keep your costs down and you are handy. But, this is an investment and a business. If you miss something major trying to save $500 you may go quickly from profit to out of business. If this particular house doesn't have enough margin for an inspection, than move on because there just isn't enough wiggle room here.
You may be able to save money by using the same inspector over and over again, or just having the inspector check the major items, who cares if the dishwasher works if you are going to be replacing it. But your foundation, roof, electrical, etc all need to be professionally checked so you know exactly what you are buying, exactly where you are going to need to make improvements and exactly how much money you are going to need to spend.
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