Currently, real estate investors are looking for homes to flip. Flippers are looking to buy property at a relatively low price, fix any issues inside and out, give it a fresh coat of paint, and quickly re-list it for a profit. But buying a property to flip can sometimes be a lengthy process if you are new to an area, or just starting. The following are just a few tips you should consider when choosing a property to flip.
One of the first things to consider when purchasing a house to flip is the location. Nothing determines the value of a property quicker than it’s location. As a flipper, it is important to do the same research a buyer will be doing when the property is listed for sale. This is important if you are planning on purchasing a property in an area you are less familiar with. It is also important to look at the properties proximity to factors like stores and public transportation, which increase property value. A property located near a highway or airport will have a much lower value. Other factors like good school districts, lower property taxes, and school taxes all vary by area, but also change depending on the buyer.
When choosing a property, the property should fundamentally conform to the other properties in the area. It will be harder to sell a property if it is smaller and more expensive than larger properties in the area. It is also important to remember not to overdo it when flipping a house. The entire project should conform to the neighborhood in square footage but take on it’s on style through finishes inside the house, landscaping and curb appeal.
When purchasing a property to flip, it is important to remember that time is money! The longer the house sits on the market, the less potential profit the flipper will make once the property sells. Each month the property has homeowner taxes, insurance, utilities, maintenance, and possibly interest that needs to be paid. Remember, the larger the house, the more time it will take to flip and perhaps the longer it will sit on the market when it comes time to sell.
Keeping these three vitally important tips in mind when considering which property you are going to purchase for your next flip can help you have a successful flip. These tips will likely help reduce your risks and help you achieve a bigger profit!