Where to focus time, energy, and money?

Question

Hello BP,

Once I graduate college in about 6 months, I am planning on buying my first SFH or Duplex to house hack and flip at the same time. I have worked as a painting contractor for about 4 years and have basic knowledge about carpentry, landscaping, as well as some standard contractor skills.

My question to you today, is what should I look for in acquiring a home to flip ( how do I make sure its not a money pit), but also where should I focus my time, energy, and money, to maximize the profits? Should I focus on landscaping? Should I focus on making a beautiful kitchen? Any advise is helpful.

Thanks,

Brandon

Levi T. · Answer

Focus on getting the best deal possible, a deal that is better than anything anyone else is getting.  That alone will give you more money that any of the above options.See if you can find a house that only needs new carpet and paint, but the owner just has to sell now, then get it for half it's market value. It might take you all year to find one at first, but at least then you have a lot of extra equity to BRRRR with, and just carpet and paint to replace.

James Cloman · Answer

Being a contractor helps with the projects for sure. No need to overdo but make sure its still a great job. You know your numbers better for sure in that sector. Make sure you run accurate comps on after rehab values including sellers assist and other possible factors depending on your market. That was a mistake in my area, appraisers were taking in 6% sellers assist for transactions which of course takes out of profit and overall AVR numbers.

Matt Gragg · Answer

@Brandon Trafford Kitchens and bathrooms sell houses but first impression is everything, so make sure the front yard looks good!

Angel Dejesus · Answer

My guess is that your knowledgeable with the handy so my advice is buy a c class property in a c class area. Your margins of profit will be higher. Just a tip from a c class Invester it's only a bad deal if you can't maximize your leverage. So aim high. Buy a turn key property and rehab the inside while getting paid. Bottom line

Where to focus time, energy, and money?

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