Four Things To Consider Before Buying A Home To Flip
Posted on: 27 January 2017
Flipping a home can be a great way to make a lot of money in a very short period of time. There are many people who think that flipping a home is a quick and easy process that they can tackle on their own. This is not always the case, though. The guide below walks you through a few things to do before you invest in a home to flip.
Consider the Location of the Home
You first need to consider the location of the home. If it is located on a busy street or a bad part of town, no amount of upgrades will make it easy to sell. You want to buy a home that is the ugly duckling of the neighborhood. The home needs to be able to be updated rather easily and be located in a part of town that someone would want to live in.
Consider the Condition of the Home
Hire a contractor to walk with you through the home to inspect it. The contractor will be able to let you know what issues he or she sees immediately and help you to determine if there are any codes or permits that will need to be filed in order for you to be able to make the changes that you want to make to the home.
Consider the Remodeling Costs for the Home
While you are choosing what changes you want to make to the home, you need to consider the cost of the changes. It would be great to add top-of-the-line fixtures to every element of the home, but that will make your remodeling costs go through the roof. You need to be sure to take the time to invest in changes that will improve the overall quality of the home, without having to spend an arm and a leg.
Consider the Comparable Homes Nearby
Finally, you need to have your real estate agent find comparable homes in the neighborhood to compare the home to. This will let you know how much the homes have recently sold for and learn if there are any upgrades that were made to them to make them more valuable. You can use this as a guide to determine what you could possibly get for the house when you put it on the market.
After considering these things, have your real estate agent walk through the home with you. Let them know what upgrades you plan to make to the home and allow them to give you an estimate for what they think you will be able to list the home for after everything is said and done. Once you have taken all of these factors into consideration, you will be able to have all of the knowledge you need to make an informed decision about whether or not the home is the home for you to flip.
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