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.
In part 2 we mentioned why getting a home inspection is crucial.
Part 3 spoke about having a neutral set of eyes, like a friend, come take an honest look.
4. Don't over improve it.- Yes granite, pools, subzero refrigerators are nice and who wouldn't want it. But are you going to get your money back. The goal isn't to make the palace in the neighborhood. It is to make a profit. If you put the wrong items in the wrong location your buyer may not even value what you have to sell. And, even if a buyer does value an over improved house, the appraiser will not. Sometimes going on a field trip to houses for sale in your target price range is a good idea so you see what buyers are buying now and how you can improve it a little. It is also wise to think like a business and look at the black and white numbers rather than how nice something will look. Dropping too much money into a flip can make it a giant flop in no time.
If you are looking to start flipping in the Vancouver WA area, give Dawn Workman a call. Dawn is an experienced Realtor located in Camas and has done many flips in Arizona and Washington. She has a wealth of information and is more than happy to share her experiences and advice with you. Not ready to start flipping yet? No problem. She may have strategies that can help you get started faster or just give you some direction for when you are ready.
Dawn Workman 480-540-8100