Can Anyone Flip a House?

It seems so easy! Buy a rundown house, fix it up, and sell it for a profit. If you watch the many shows on television, they make it look so easy to make a fast flip. Yet, far too many would-be real estate moguls overlook the basics and end up failing.

The first mistake people will make is overpaying for a house. My piece of advice is to limit your financial risk and maximize your return potential. In other words, know how much the necessary repairs or upgrades will cost so you don’t pay too much for the house. I make sure to only buy houses for 60% of their market value. For example: If a house is valued at $150,000 and needs $25,000 of repair, I would only want to pay $90,000 for the house. That way there is room for to breath if we run into any problems.

Another mistake is that people go into flipping houses without enough skills. A lot of people that flip houses are also very good handymen. If you know how to paint, lay carpet, can hang drywall, and install a kitchen sink, you've got the skills to flip a house. Knowing how to do these things will save you a lot of money, otherwise you will have to pay professionals to do it for you. I’m not saying that you can’t hire people to do all the renovation for you, but you should be aware that the repair cost will be closer to $35,000 - $40,000.

If you have any questions about flipping houses or know of any houses that are in distressed, please contact us today 920-215-4201