First time flipping a house

3 Replies

Hey everyone, My wife and I are looking into flipping houses . She just became a realtor and we think that we could make some money on the side flipping house. My question is, for a first time flip should we flip a retail home or a forclosed / auction home?

Hello and welcome to this site Chad! The more units,the better. Retail s probably the best mentioned. The younger,the better. You and your wife need to be flexible to move or are you planning to have a bigger family? Banks look out for their income over yours. HUD homes that were foreclosed on are are available to offer on everyday until an offer is approved. Every state has different laws on auctioned hoes, those homes tend to be in bad shape and have a redemption period for the previous homeowner to pay delinquent property taxes which prevents any work on those homes until that period is over. They range from 6 months to a couple years, depending the state location. They do not make any repairs beforehand.

Your knowledge will help you.  Enhance both of y'alls education and try to keep current. Do not take any chances when first starting off and just do what is average in that area.  Always try to improve the exterior and make a good first impression of those driving by.  The more motivated the seller is tends to take a lower price.  You both need to feel good about a decision.  Know the area you work in.

Good luck to you both!

get a foreclosure, if you doing the work yourself, you'll have an upper hand on the competition cause your margins will be higher.   Most plug numbers into a program and if certain percentages, based on contractor prices, don't match  they pass on a good opportunity... if its your first house... do the work yourself .. make the mistakes , learn what ever repair/install/demo should costs..... then on your 2nd 3rd 4th you know the numbers and can hire half the work out, do the other half to save money and work towards writing checks and closing deals