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Rehabbing & House Flipping

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Ethan Voltzke
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Live in flip

Ethan Voltzke
Posted Apr 17 2023, 11:28

I’m looking to invest in a live in flip as my first real estate investment. What are some things to look for when searching for a property? 

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Andy Sabisch
Pro Member
  • Investor
  • Wilkes-Barre, PA
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Andy Sabisch
Pro Member
  • Investor
  • Wilkes-Barre, PA
Replied Apr 18 2023, 18:00

First, have you looked at financing  options that are out there?  There are programs where you can roll the cost to buy and rehab into one loan.  THere are others that allow you to buy with virtually no money down (3%).  You need to have financing set before you start looking at properties so you are looking at the right market.

As far as a flip, how much work are you willing / able to to for sweat equity?  How much will you need to contract out?  Finding quality contractors is another challenge starting out.

You need to see if there is a local REIG that you can join or at least attend a few meetings.  Members can help you in all these areas as well as give you recommendations as you move forward and more importantly, they know teh local market far better than most of us do so they will have insight into areas to focus on and areas to avoid.

We are here as a resource . . . don't overlook the local investors either

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Aaron Schrader
  • Real Estate Agent
  • South Dakota
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Aaron Schrader
  • Real Estate Agent
  • South Dakota
Replied Apr 19 2023, 07:51

I'd evaluate your own timeline expectations for the whole project- will you live in it for 2+ years or less than that, and consider your next step and how to best manage taxes and expenses.  Would you roll your profits into another primary residence after two years of living in this flip? 

 Other things I'd consider- do you have a place to crash while certain aspects of the job are being done?  I did all my own hardwood floors in a house and had to move the whole family out while sanding and finishing.  As far as what to look for when searching for a property...If you're flipping it then I'd look for a home that is undervalued in a nice area, so that when you are done you can sell it quickly.  I'd probably shop for generic appeal (3 bed 2 bath type home).  

When rehabbing, keep things neutral and don't get weird ideas and try to implement funky project ideas- these slow you down, decrease the breadth of appeal to wider buyer pool.  Let the buyer put their own funky designs on it.  Talk to a few different agents in your area that have a reasonable amount of sales volume and ask them what the majority of their buyers are looking for in a home.  Is it lot size?  Bedrooms?  Neighborhoods?  You want to hit as broad of an appeal as possible!  

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