| These tips will help you find good investment properties.
The obvious way to be safe is to make sure you buy low all the time.
In order to determine if a house is a good investment, consider these points.
1) Extent of repairs
Most houses for flipping need repair.
You must determine the extent of repairs needed and estimate how much it will cost.
If repairs are mainly cosmetic, then you probably have a good deal.
Unexpected or big rehabs can cost too much and leave little to no profits for you.
2) Budget
Can you rehab the house within your budget?
Every now and then, it might be required to perform an inspection even for a house that needs repairs to find out if you might need to do structural repairs such as plumbing, changing walls and so on.
3) Time frame
Can you complete repairs within a short time?
Will these changes increase marketability and value of the house?
Flipping houses requires speed to keep costs low.
The goal is to spend as little as possible put your money in your pocket and move on to the next deal.
4) Hiring contractors Vs doing it yourself
Even though flipping houses involves wholesaling them to other rehab real estate investors, it may possibly be necessary to assess the type of repair that needs to be done and if you can do it yourself if necessary, or hire a contractor to do it for you while keeping the carrying costs low.
5) Neighborhood
You need to avoid war zones or very low priced areas.
You must also avoid high end areas when flipping houses.
Staying within the medium price range will not only give you more deals, but your properties will be easier to sell.
Is the home a good match with other homes in the same neighborhood?
Is it too big or too small in comparison to similar houses?
These things will make your house harder to sell and eat into your profits.
Stay within the average for the neighborhood to sell faster.
6) Comparable sales
Do comparable houses sell at prices that will allow you to make a profit?
Though you could think you are buying low, comparable sales in the neighborhood could prove you wrong.
It is safer to have conservative estimate of the fair market value when buying houses than make end up making a loss because houses in the same market have not been selling within your price range.
7) Demand for the property
Even in a depressed real estate market some neighborhoods are more marketable than others.
Is it near important services like schools, hospitable, shopping, recreational facilities and others that make it more appealing to buyers?
This will make it easy for you to sell the house fast.
Whether you plan to flip the house to another investor or do the repairs yourself, these are important factors to consider that will make your house sell faster and move on to the next deal.
Simon Macharia invests in real estate in Dallas Texas and runs his business from a real estate investing website that also automates his business. Click here to find out how to can automate your business and make more while spending less time and money. |
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