biggest mistakes made while flipping REOs

[Baran Giresunluoglu]

Hey, what are some mistakes beginning investors tend to do while flipping REOs?
I don't have much experience so I will have to learn from others mistakes

[Steve L.]

using bad comps
- comparing HOA to non-HOA
- comparing 1950's house to 1990's house
- making major value per square footage adjustments

not accounting for or underestimating "junk fees" you pay:
- property tax
- 4 sets of utilities every month
- insurance
- usually buyer's closing costs
- home warranty (what a scam)
- hard money lender junk fees.. they usually charge over 1k plus the points they quote
- cleaning lady

over fixing or under fixing a house
- every market is different, but we don't do any landscaping - it doesn't pay in my market
- we usually put a/c in, as that does pay
- etc etc
- the house doesn't need to meet your standards to live, it just needs to be better then the competition

trusting an un-educated agent to list it
- you don't want to chase the market down
- have the agent attempt to "double-end" the sale
- be too picky
- be not picky enough
- mismanage the sale escrows (a bad agent can let an FHA loan take 90 days. a good agent can get it done in 30 days).