Not every market is the best choice for flipping houses. For example, if youre starting off with just 10,000 that you can work with out of pocket, you probably shouldnt start flipping houses that are being listed in the millions. It wont work out well for you and youll end up with less than you started with. The general rule of house flipping is the less cash you have to work with, the less the house should cost overall. That means that the first two questions that you need to answer are:
How much cash are you starting off with?
What market can you afford to work with?
You need to know where the neighborhood that youre planning on working with sits on the scale of A to D. A neighborhood that is >
Youd be setting yourself up for failure if you went into this without a real plan. It doesnt have to be fancy or crazy, or even super in-depth. You need to know how much youll think the flip is going to cost you and how much youre going to make off of it. Also, make sure that youre never buying anything that has major problems that you wont be able to fix within your budget. For your first house, you want something that you can flip fast and easy.
The next thing that you need to do is to find the right house to start your work on. Again, this is where the neighborhood >
Here comes the part that you were expecting: the renovation. This is one of the most important parts of the process. Youll be on the clock working on the house all day and into the night since the faster you can flip the house, the more youll make. Add features that make the house feel homey. Add a skim coat to the walls to make everything last longer and to give it an appearance of quality. Every month that you spend working on the house youll lose money. You have to pay to taxes, bills, and insurance. Because of all of that, try to finish the home as soon as possible.
The final step of the process is thankfully the easiest. All you have to do now is sit back and get ready to sell the home. Its up to you to set the price that you want to sell it at. You want to sell it low enough to make sure that the house is >
Once youve done that, you can move on to bigger and better projects.
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