What I have learned about the cost of flipping homes!

The 4 things that I have learned from the investor that I'm working with is in order to "flip" a property there are 4 things you must be aware of that can put a crimp on your profits.

1. Property Taxes. Keep the property for a few years and you may experience a surge in property taxes especially if your taxes are reevaluated during that time. Some hot real estate markets have seen taxes nearly double in just 5 or 6 years.<BR>

2. Renovation Expenses. When you purchased a "fixer upper" at a bargain rate. Once your project is complete will you be able to recover the expenses and make a profit especially if the value of your renovated property is above those in your neighborhood? In addition, can you withstand a correction in real estate values?

3. Insurance, Mortgage and Hard Money loan Costs. You will pay more for homeowners insurance if you do not occupy the residence and you have tenants. If you are financing the property you know that your mortgage rate is higher as well.

4. Rental Pressures. A market saturated with rentals will mean that the rents you can charge will be less than what you had hoped to receive. In some markets you are required to get special licensing in order to be a landlord. In other markets the legal rights of tenants mean you could have a lengthy and expensive battle in ridding yourself of a bad tenant. Will the lower income levels coupled with the added expenses drag your investment down?

Of course, you can limit your risks [and costs] by doing the majority of the upgrades yourself, appealing excessive property tax increases, and finding for yourself a trusted and dependable tenant. It isn't easy flipping a home, but with a lot of pluck and determination it can result in strong profits for you.

I do all the framework, installation of all kitchen fixtures, dry wall, hardwood floors, windows, doors, siding ect...

I sub out electric, plumbing and roofing work. This saves me 1000's on the flip.

if you live in the atlanta area and you need help with your flip let me know. I can cut a good deal with you on your labor costs. I've been in the construction industry from the age of 19 I'm now 29 and still love working in construction