What Condition Do You Look For?
I am in the initial stage of finding my first rehab. I'm focusing my search on the MLS for the time being since I am taking it slow and trying to learn the ins and outs of my area. My goal this year is to flip 1 house and make a profit as a proof of concept.
Obviously the rehab business is based on taking houses that need some sort of work, cosmetic, structural or both, and making them desirable to buyers. That being said, most of the prospects I see are simply older homes that have not been updated for a long time, they typically have things like wood paneling, pink tile in the bathrooms and wallpaper. In general they are livable but just ugly and need paint, new bathrooms and probably a kitchen update. Are these the types of homes most are flipping, or are you looking for the really trashed out places that need a total gut and rebuild?
I realize anything can make money as long as the purchase price is right, but are these older out of date homes even worth looking at? I.e. is being out of date generally a big enough turn off to your average home buyer that a wholesale buyer like myself can get a good deal with the intent to rehab it?
Tom