What Makes a Good Property to Flip? How to Choose Your Next Project.

When you decide to start flipping houses (or you have already been doing this for years), you need to know the truth. You have to pick the right houses to flip or you are going to struggle to find a buyer when the time comes. If you want to be able to buy a home, fix it up quickly, and sell it right away, you need to find the perfect project.

So, how can you tell? Here are some things to consider when choosing your next flip. 

Stick with basic homes. Though trendy homes may look like good projects, the truth is that they often aren’t a good place to start. It is much better to buy simple homes. Light and bright homes in neutral colors will sell a lot easier than homes with really fancy bathrooms and kitchens. 

The same goes with odd layouts and add-ons. Some homes are just not arranged very well. You may have to go through a hallway, just to get to the kitchen. A five-bedroom house may be better off with three (due to the sizes of the rooms). You may not be able to fix these types of mistakes. You should also avoid add-ons. There are times when they aren’t done well, and it shows. You are going to have trouble selling homes like these because they need a specific buyer for them. 

Location, location, location. The location of a home is equally important. You don’t want to purchase a home in a bad neighborhood because you are going to watch it sit for a long time until it sells. You should choose homes in areas where homes sell quick! Look at the neighborhoods and what they offer people who live there. Are there bike trails and playgrounds for children? Are the schools good? 

If parking is available, is it good? If there isn’t parking, is the home close enough to stores so people can walk to get their groceries? Is it close to public transportation, so people can still get to work? All of these extra things will help a property sell faster. 

Make sure that the home is structurally sound. Homes with foundation problems are just going to be costly when it comes to renovations. Instead of just changing a few minor things, painting, and putting down new flooring, you may be looking at putting in a new foundation (or even starting over). You are not going to make your money back (and make a profit) if you have to invest that much money into a home. 

The same goes with the roof. Though you may not worry about spending a few thousand dollars to put a new roof on a home, you may also be looking at other damage. You may find yourself dealing with water leakage and mold issues, especially if the roof should have been replaced a long time ago. You may need to replace walls, floors, and ceilings, along with having a mold specialist come out to do some cleaning. 

It is important that you never jump right in when you are flipping houses. You need to find good homes with solid foundations (and good roofs) if you want to be able to make some money. If not, you are just going to have to invest too much into a home to make a profit. The location is equally important. You don’t want to buy a cheap home in a bad neighborhood because nobody is going to want to live there when you get it finished!

If you need more advice on flipping homes (or are looking for financing help), don’t hesitate to contact us today. We will be glad to help you get started on your journey into real estate.