Flipping Houses for Profits

One of the ways to make profit in real estate investment is fixing up houses and sell for a profit. However, there are strategies to make the process efficient, safe, and most profitable. Here are the 6 strategies:

1. Great credit score and/or a good cash amount. Before buying a property, buyers need a good credit or enough cash on hand. More cash is also required later for renovation. If these two are lacking, the buyer should focus on building these up as the basics for flipping houses for profits.

1. Standard or mid-size home. There are many standard or mid-size homes out there and these are in demand on the market. It is therefore wise to invest in flipping these homes. They are also simple and easy for starters who just got into the house-flipping business. It is typically a 3-4 bedroom homes (1,200-2000 sq. feet) with a lower price. These simple homes are meant to make it easier to flip later. The buyer/flipper also need to make sure the house is not too complicated to flip to avoid depleting the renovation budget.

1. Location, location, location. Always research where the house is located. Is the neighborhood nice? Is the location convenient to get to the stores, school, work, etc.? Are the streets nicely paved and well-lit? These are some of the factors to play into how fast and how much the renovated will be sold.

1. Know the market. Invest in home inspection to make sure all defects are exposed to help guide the purchasing decision. All defects need money to fix thus the buyer/flipper should weigh the costs vs return on investment carefully. It is the general rule of thumb that flipping house should only be mostly cosmetic upgrade to minimize all renovation expenses. Also analyze the neighborhood with the surrounding homes.

1. Work quickly. The longer the property sits idle untouched, the more money need to be spent on upkeeping and renovation as well as all the utility bills. Work with the realtor to close the property as fast as possible so that the buyer can move on to the next phase of renovation. The sooner the property is sold, the more profit would be made.

Topics: real estate, investment, flipping houses

Work cited: CREOnline; https://www.creonline.com/6-best-practices-for-flipping-houses-and-maximizing-profits/