The truth is flipping a house takes some serious work and is extremely risky. However, it can also be extremely profitable if done right.
Here’s what you need to know about flipping houses and investing in real estate.
Finding and Buying a House
For your flip to be profitable you have to find the right house. You need to find something that is a) structurally sound b) requires only cosmetic work and c) is in the right location.
If you want a house that sells fast it needs to be where people want to live.
This is the most important part of the whole process. You have to find a good house in a good location for a good price.
Also be prepared to put a large chunk of cash down. Banks have tightened up their lending regulations in recent years and they’ll be hesitant to lend you money for a flip. You’ll also need cash to cover insurance, property taxes, and renovations.
Remodeling the House
After you find the perfect flip house you’ll have to remodel. It’s important that you buy a house that only needs cosmetic work or you’ll be in over your head.
With most flip houses you’re going to do a lot of work. You can save money on things like fixtures by looking for contractor packs, you can go for low cost hardwood flooring or carpet, and ask for discounts from hardware stores when you’re buying in bulk.
If you plan on hiring out this work to contractors you need to budget accordingly.
Selling the House
After you have the house bought and fixed up to your satisfaction you need to find a good real estate agent to help you move your home quickly.
Even with a good real estate agent you can’t expect magic results. How fast you sell your home largely depends on the real estate market in your area. It could take anywhere from weeks to years.
Flipping a House in College: Should You Do It
Flipping a house is a high risk high reward game. When done right it can be extremely profitable and can even be turned into a long term business. When done wrong you’ll end up taking a loss or sitting on a house that you never wanted in the first place.
If you do decide to give flipping a try start small, put in the work, and don’t invest money that you can’t afford to lose.