Fixing and flipping a property can generate a fair bit of income, if done wisely. We suggest three things to look for to set you on the right rack for a quick turnaround and a healthy profit.
Recognize The Things You Cannot Change
You may see a property and feel that the property may have endless potential, but you will need to recognize there are some things that you can and many things that you cannot change. It sounds obvious, but you can never change the location.
Sometimes, the most appealing home is located in the least attractive part of town. Alternatively, you can find a real dump in a great neighborhood. It may be hard to determine which of these makes for a better investment property. Consider the buyers market, and whether or not the home is really good enough to be able to attract the kind of buyer you are after. In the case of the tear-down in the good neighborhood, would you be able to put something up that would make enough sense to turn a profit? Often times, the sales price reflects the cost of the neighborhood more than the house itself.
Good Bones
When a house has good bones, you know you are going to be able to improve it without having to do major structural work. Replacing a roof or the foundation, for example, will add significant cost to any project, and it will also add time. When looking for investment properties, good bones are essential.
Know the Trends
Knowing the current real estate trends will help you to make smart investment decisions, and it will help you to be able to flip a house quickly, and at a profit. Trends are changing quickly, and you will need to be able to look at a house, immediately identify what you can do to make it attractive, and be able to get it on the market with the popular features in tact and highlighted in the quickest possible manner.
If you are considering a property rehab project and need funding, Center Street Lending can make it happen. We lend in CA, AZ, CO, UT, TX, FL & NC, up to 80% of the property purchase price as well as 80% of your anticipated rehab costs. Give us a call today at 949.244.1090, or request a no-obligation quote online. We use a simple, streamlined process, and can fund your project in as little as 24-hours!
Center Street communications are not intended to provide business, legal, tax, investment or insurance advice. No Center Street communication should be construed as a recommendation for any business or investment strategy by Center Street or any third party. You are solely responsible for determining whether any investment, investment strategy, business strategy or related transaction is appropriate for you based on your personal investment objectives, financial circumstances and risk tolerance. You should consult your legal or tax professional regarding your specific situation.