Question: I really don’t want to do rental property, I’m looking more at Flipping houses and really need some guidance, if you have any advice . . . ?
Response: You need to really become comfortable with analyzing potential deals. In my opinion, one of the best things you can do to get started flipping is to study a certain market near your home to get to know the values of the properties. Then go and see as many as you can to understand what buyer’s expect when they purchase properties in that market. Then you need to see as many “junkers” as you can and get comfortable inspecting the property top to bottom and estimating repairs.
When you know how much the property will be worth when it is fixed up (the market) and what it will take to get it fixed up (the estimate) then you can make offers on the junkers.
The biggest sticking point for new investors is being comfortable with finding these two numbers. Most “newbies” don’t get out there and figure it out, they just spend more money on more education hoping to get confidence that way. Don’t get me wrong, I am a HUGE believer in paying the gurus for education, but you have got to get out there and just start doing it.
Response 2: An ideal place to start looking might be in neighborhoods that are in the 25-35 year old range; basically where houses are outdated but still hopefully in good structural condition.With this kind of unit, you can focus on some of the more basic, value-added repairs such as paint, flooring, landscaping, and other basic finishing touches. This might present a more low risk fixer-upper for your first time. Good Luck!